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Business Studies · 2023 · 6 marks
CBSE 2023 · Region 5 · Set 1 · Q33
'Best Electronics started manufacturing washing machines
under the brand name 'Amaze'. Once the washing machines
were manufactured, packaged, branded, priced and promoted,
they had to be made available to the customers at the right place,
in the right quantity and at the right time.
'Best Electronics' provided for accurate and speedy processing of
orders so that the washing machines reach the customers in time,
in the right quantity and specifications. They also ensured that
the washing machines are physically made available to the
customers. Further, 'Best Electronics arranged for facilities to
store the washing machines at different locations near the
market to minimize the charges on transportation. Explain any
three components of physical distribution discussed in the above
case.
Marking-scheme solution
The three components of Physical Distribution discussed in
above case are:
(i)
Order processing
§ 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
will reach the customers late or in wrong quantity
(ii)
Transportation
§ It is the means of carrying goods and raw materials from the
point of production to the point of sale.
§ It is an important component because unless the goods are
physically made available the sale cannot be completed.
(iii)
Warehousing
§ It refers to the act of storing and assorting products in order to
create time utility to them. The basic purpose is to arrange
placement of goods and provide facilities to store them.
§ The need arises because there may be difference between the time a
product is produced and the time it is required for consumption.
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CBSE Class 12 Business Studies past-paper question from the 2023board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.