Question

Which of the following is true of a physical distribution system?

A. It involves only the physical movement of goods.
B. It is a total systems approach to the management of the distribution process.
C. A decision involving an activity has no impact on the cost and efficiency of one or all others.
D. It excludes the interdependence of the costs of each activity.
E. It includes transportation mode, inventory quantities, and packing.

Answer 1

Main Answer:

The correct option is E. It includes transportation mode, inventory quantities, and packing.

Therefore, the correct answer is E. It includes transportation mode, inventory quantities, and packing.

Explanation:

A physical distribution system encompasses various interconnected activities involved in the efficient movement of goods from production to consumption. Option E accurately reflects the comprehensive nature of a physical distribution system, as it involves considerations such as transportation mode, inventory quantities, and packing. These elements are crucial components that contribute to the overall effectiveness and success of the distribution process.

In a physical distribution system, transportation mode is a key aspect as it directly influences the speed, cost, and reliability of delivering goods to their destination. The inventory quantities represent the balance between demand and supply, ensuring products are available when and where they are needed. Additionally, the packing of goods is vital for protection during transit and also influences storage and handling efficiency.

Unlike option E, options A, B, C, and D present inaccurate statements about a physical distribution system. Option A overlooks the broader aspects involved in distribution, option B wrongly characterizes it as a total systems approach, option C incorrectly suggests the independence of activities, and option D excludes the interdependence of costs.

In conclusion, the correct answer, option E, captures the multifaceted nature of a physical distribution system, emphasizing the importance of transportation, inventory management, and packing in ensuring a smooth and efficient flow of goods.

Therefore, the correct answer is E. It includes transportation mode, inventory quantities, and packing.

Answer 2

The true statement about a physical distribution system is that it is a total systems approach to the management of the distribution process, involving activities like transportation modes, inventory management, and more, with interrelated effects on cost and efficiency.

Thus the correct answer is B.

Step-by-step explanation:

The correct response to the student's question about a physical distribution system is B. It is a total systems approach to the management of the distribution process. This approach acknowledges that the physical distribution system doesn't only comprise the physical movement of goods.

Instead, it is an integrated system that considers all factors and activities involved in the movement of products from the manufacturer to the end-user. This includes decisions on transportation modes, inventory management, warehousing, material handling, order processing, and packaging.

All of these aspects are interrelated, and a change in one can affect the costs and efficiency of the others, thereby emphasizing the importance of coordinating these activities as a single system to enhance overall efficiency and reduce costs. Locations near transport networks and having access to varying modes of transport, such as uncrowded freeways or rail and water transport, can significantly affect the cost-effectiveness of distribution systems.

Thus the correct answer is B.