In a firm that fully implements the physical distribution concept:
A) Physical distribution activities are dealt with as separate, unrelated activities, not as coordinated parts of a single system.
B) The firm seeks to minimize the cost of distribution for a given customer service level.
C) Increasing the level of service provided is not related to customer perceptions of value.
D) Physical distribution is never a source of competitive advantage.
E) None of the above.

Question

Quizplus · Accepted Answer

The physical distribution concept involves coordinating all aspects of the distribution process to maximize customer satisfaction and minimize distribution costs. Therefore, the firm would seek to minimize the cost of distribution for a given customer service level. Thus, option B is the correct choice. Option A is incorrect because the physical distribution concept emphasizes on coordination and integration of activities to create a single, efficient system. Option C is incorrect because the physical distribution concept stresses on the importance of providing high levels of service to create customer value. Option D is incorrect because physical distribution can be a key source of competitive advantage through superior customer service, efficient logistics, and effective inventory management.

In a Firm That Fully Implements the Physical Distribution Concept