Business StudiesMarketing

__________ is the means of carrying goods and raw materials from the…

__________ is the means of carrying goods and raw materials from the point of production to the point of sale.

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Transportation

Option (1) Warehousing — Incorrect. Warehousing means storing and assorting goods to create time utility. It keeps goods till they are needed.

Option (2) Order processing — Incorrect. Order processing means handling customers’ orders accurately and quickly. Orders flow from customers back to the maker.

Option (3) Transportation — Correct. Transportation carries goods and raw materials from where they are made to where they are sold. Unless the goods are physically made available, the sale cannot be completed.

Option (4) Inventory control — Incorrect. Inventory control means deciding the level of stock to keep, balancing cost and customer service.

NCERT (2026-27 Edition): “Components of Physical Distribution The main components of physical distribution are explained as follows:
1. Order Processing: In a typical buyer-seller relationship, order placement is the first step. Products flow from manufacturers to customers via channel members while orders flow in the reverse direction, from customers to the manufacturers. A good physical distribution system should provide for an accurate and speedy processing of orders, in the absence of which, goods would reach the customers late or in wrong quantity or specifications. This would result in customer dissatisfaction, with the danger of loss of business and goodwill.
2. Transportation: Transportation is the means of carrying goods and raw materials from the point of production to the point of sale. It is one of the major elements in the physical distribution of goods. It is important because unless the goods are physically made available, the sale cannot be completed.”