Question

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

1) It involves only the physical movement of goods.
2) It is a total systems approach to the management of the distribution process.
3) It includes decisions involving an activity that has no impact on the cost and efficiency of one or all others.
4) It excludes the interdependence of the costs of each activity.
5) It includes transportation mode, inventory quantities, and packing.

Answer 1

A physical distribution system is a total systems approach that involves more than the physical movement of goods; it includes transportation, inventory, and packaging decisions, all of which impact overall costs and efficiency.

"The correct option is approximately option 5"

Step-by-step explanation:

The question asks us to identify correct statements about a physical distribution system.

The term refers to a comprehensive framework that manages the process of getting a product from the manufacturer to the end consumer. It encompasses not only the actual physical movement of goods, but also involves decisions regarding transportation methods, inventory levels, warehousing, order processing, and packaging.

These elements are intricately connected, meaning that a decision in one area often impacts costs and efficiency across other areas of the system.

Therefore, the answer to the question is that option 2) "It is a total systems approach to the management of the distribution process" and option 5) "It includes transportation mode, inventory quantities, and packing" are true of a physical distribution system. Options 1), 3), and 4) are incorrect as a physical distribution system involves more than just the physical movement of goods, and decisions within the system are interdependent and influence the cost and efficiency of the overall system.