12th Class Business Studies Sample Paper Business Studies Sample Paper-1

  • question_answer
    Explain any three components of physical distribution.

    Answer:

    The three main components of physical distribution are explained below: (i) Order Processing A good physical distribution system provides an accurate and speedy processing of orders, in the absence of which goods would reach to the customer late or in wrong quantity, resulting in customer dissatisfaction. (ii) Transportation It is one of the major elements in the physical distribution of goods as it carries good and raw materials from the point of production to the point of sale. (iii) Warehousing It refers to the act of storing and assorting products in order to create time utility. The basic purpose of warehousing is to arrange placement of goods and facilitates storing until the goods are sold.


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