Final answer:
The sharing of physical distribution functions can impact the efficiency, cost, and availability of products in the supply chain.
Step-by-step explanation:
The physical distribution functions, also known as logistics functions, refer to the activities involved in moving goods from the producer to the consumer. How these functions are shared among different entities within the supply chain can have significant impacts. For example, if a retailer takes on the responsibility of distribution, they may need to invest in transportation infrastructure and employ logistics experts. This can affect their costs, efficiency, and ultimately the prices and availability of products for consumers.
Here are some key points:
- The allocation and coordination of physical distribution functions can affect the efficiency and effectiveness of the supply chain.
- Shared physical distribution functions can lead to cost-sharing and economies of scale.
- The choices made in sharing physical distribution functions can impact the availability, accessibility, and affordability of products for consumers.