The right physical distribution system should be based primarily on
A) the desired customer service level.
B) how customers store the product.
C) the physical characteristics of the product.
D) what is the lowest cost method of transportation for the product.
E) the inventory level that allows the smoothest production runs.

Question

Quizplus · Accepted Answer

The desired customer service level should be the primary consideration in choosing a physical distribution system as it directly affects customer satisfaction and loyalty. The other factors listed (how customers store the product, physical characteristics of the product, lowest cost method of transportation, and inventory level) are also important considerations, but ultimately, the goal of the distribution system is to provide the desired level of customer service.

The Right Physical Distribution System Should Be Based Primarily on