Question: Identify the major components of a physical distribution system. Physical distribution involves a broad range of activities concerned with efficient movement of finished goods from the end of the production line to the consumer. As a system, physical distribution consists of six elements:
(1) customer service,
(2) transportation,
(3) inventory control,
(4) materials handling and protective packaging,
(5) order processing, and
(6) warehousing. These elements are interrelated and must be balanced to create a smoothly functioning distribution system and to avoid sub optimization.