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 these alternatives is correct.

Question

Quizplus · Accepted Answer

In a firm that fully implements the physical distribution concept, the focus is on maximizing customer service levels at minimal cost. This involves coordinating the various physical distribution activities as parts of a single system to achieve efficient and effective distribution of goods. Hence, option B is the correct choice. The other options are not true of a firm that fully implements the physical distribution concept.

In a Firm That Fully Implements the Physical Distribution Concept