The physical distribution concept says (or implies) that:
A) transporting, storing, and product-handling are unrelated activities for cost control.
B) the best distribution system is the lowest cost one.
C) a firm should seek to minimize the total cost of transporting, storing, and product-handling-for a given level of customer service.
D) if the transporting department minimizes its costs and the storing department minimizes its costs and the product-handling department minimizes its costs-then the total cost of physical distribution will be minimized.
E) None of these alternatives is correct.

Question

Quizplus · Accepted Answer

The physical distribution concept emphasizes that a firm should aim to minimize the overall cost of transporting, storing, and product-handling while simultaneously providing the desired level of customer service. This means that all three activities are interrelated and should be optimized together to achieve cost efficiency and customer satisfaction. Option A is incorrect because these activities are closely related and should be integrated for cost control. Option B is too narrow and focuses only on cost without considering customer service. Option D assumes that optimizing individual departments will lead to overall cost minimization, which may not always be true. Therefore, the correct answer is C.

The Physical Distribution Concept Says (Or Implies) That