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Business Studies · 2026 · 4 marks
CBSE 2026 · Region 4 · Set 1 · Q29
Rhea runs an online business selling handmade candles. During the Diwali season, the demand for her handmade scented candles increases a lot. A month…
Rhea runs an online business selling handmade candles. During the
Diwali season, the demand for her handmade scented candles increases a
lot. A month before Diwali, she received a big order from a chain of gift
stores in and around the city. Rhea immediately checked the order
details and processed it. She was aware that it was important to provide
for accurate and speedy processing of orders, in the absence of which
goods would reach the customers late or in the wrong quantity or
specifications. After processing the order, Rhea arranged a vehicle to pick
up the cartons from her workshop. She knew that the products can reach
the customers only when they are physically moved from the place of
production to the place of sale. The vehicle delivered the order at the gift
chain’s warehouse well before the festive rush.
(a)
Identify the two components of physical distribution that Rhea
managed effectively.
(b)
Explain the other two components of physical distribution that
Rhea needs to work on.
Marking-scheme solution
(a)
Two components of physical distribution that Rhea managed
effectively are:
(i)
Order processing
(ii)
Transportation
(b)
Two other components of physical distribution that Rhea
needs to work on are:-
• (i) Warehousing
Warehousing refers to the act of storing and assorting products in
• order to create time utility in them.
The need for warehousing arises because there may be difference
between the time a product is produced and the time it is required for
consumption.
• (ii) Inventory Control
It involves deciding about the level of inventory. Higher the level of
inventory, higher will be the level of service to customers but the cost
of carrying the inventory will also be high because lot of capital
• would be tied up in the stock.
It helps in maintaining a balance in respect of the cost and customer
satisfaction.
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CBSE Class 12 Business Studies past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.