The Right Physical Distribution System Should Be Based Primarily on

question 124

Multiple Choice

The right physical distribution system should be based primarily on

• A) the desired customer service level.
• B) how customers store the product.
• C) the physical characteristics of the product.
• D) what is the lowest cost method of transportation for the product.
• E) the inventory level that allows the smoothest production runs.

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Definitions:

Market Structure

The organization and characteristics of a market, including the level of competition, number of producers, and type of products.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.

Elastic

Describes the responsiveness of demand or supply to changes in price or income.

Free Entry

A market condition where there are no barriers or restrictions preventing new competitors from joining the market.