The "physical distribution concept" is probably being used in a firm if:
A) inventories are set based on just-in-time delivery policies.
B) the total cost of distribution is as low as possible.
C) storing costs have been minimized.
D) transporting, storing, and product-handling are seen as interrelated parts of one PD system.
E) transporting costs have been minimized.

Question

Quizplus · Accepted Answer

The physical distribution concept emphasizes that transporting, storing, and product-handling are interrelated parts of one system. This means that the goal is not just to minimize costs in each individual area (such as transportation costs or storing costs), but to optimize the entire system to create a seamless flow of products from production to the customer. Just-in-time delivery policies (A) and minimizing costs (B and C) may be elements of physical distribution, but they do not capture the full concept. Minimizing transporting costs (E) does not capture the full concept either, as storing and product-handling are also important.

The "Physical Distribution Concept" Is Probably Being Used in a Firm