Which of the following is not an element of Physical Distribution?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Sales processing
Option (1) Transportation — An element of physical distribution (Incorrect). It carries the goods from the place of production to the place of sale.
Option (2) Warehousing — An element of physical distribution (Incorrect). It stores the goods until they are needed.
Option (3) Sales processing — Not an element of physical distribution (Correct). The component is order processing: receiving the buyer’s order and handling it quickly and correctly. ‘Sales processing’ is not what the list says.
Option (4) Inventory Control — An element of physical distribution (Incorrect). It decides how much stock to hold, so that goods are neither short nor lying idle.
NCERT (2026-27 Edition): “Physical Distribution: … Physical Distribution covers all the activities required to physically move goods from manufacturers to the customers. The main component of physical distribution are (i) Order Processing; (ii) Transportation; (iii) Warehousing; and (iv). Inventory Control: …” |