Consider the following:
(A) Managing inventory, that is, the levels of stock of goods
(B) Storage and warehousing
(C) Transportation of goods from one place to the other
(D) Grading of products into groups by quality and size
(E) Procuring credit services for the buyers
How many of the above are important decision areas under physical distribution as a function of marketing?
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Three
(A) Managing inventory, that is, the levels of stock of goods — Correct. Deciding how much stock to keep is a decision area under physical distribution.
(B) Storage and warehousing — Correct. Goods are held in warehouses from the time they are made until they are needed, so storage is part of physical distribution.
(C) Transportation of goods from one place to the other — Correct. Moving goods from where they are produced to where buyers need them is the physical movement of the product.
(D) Grading of products into groups by quality and size — Incorrect. Grading is the classification of products into groups by quality, size and so on. It belongs to the separate function of standardisation and grading.
(E) Procuring credit services for the buyers — Incorrect. Procuring credit services is one of the customer support services, along with after-sales and maintenance services.
NCERT (2026-27 Edition): “10. Physical Distribution: Managing physical distribution is another very important function in the marketing of goods and services. The two major decision areas under this function include (a) decision regarding channels of distribution or the marketing intermediaries (like whole salers, retailers) to be used and (b) physical movement of the product from where it is produced to a place where it is required by the customers for their consumption or use. The important decision areas under physical distribution include managing inventory (levels of stock of goods), storage and warehousing and transportation of goods from one place to the other.” |