Final answer:
In a physical distribution system, warehousing is involved as it deals with the storage of goods until they are needed for distribution to consumers. Other options listed concern different areas of business and are not directly related to physical distribution.
Step-by-step explanation:
The component involved in a physical distribution system is B) Warehousing. Physical distribution refers to the activities that enable the transfer of goods from producers to consumers. It involves activities related to transportation, warehousing, inventory management, order processing, and material handling.
Warehousing is crucial because it involves the storage of goods until they are needed, which ensures that products are available when consumers want to purchase them. The other options like human accounting, advertising and promotion, grievance handling, and after sales services are important to business operations but are not directly involved in the physical distribution of goods.