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Logistics System
Logistics System
Logistics System
Logistics System
Logistics System
Logistics System
Logistics System
Logistics System
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Logistics System

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  • Amity Business School
  • Transcript

    • 1. Amity Business School MBA Class of 2010, Semester II Distribution & Logistics Management Ms.Vandana Gupta
    • 2.
      • LOGISTICS SYSTEM
    • 3.
      • “ Physical Distribution involves planning, implementing, and controlling the physical flow of materials and final goods, from point of use, to meet customer requirements at a profit.”
      • Kotler & Armstrong
    • 4. MARKETING MIX PRODUCT MIX PLACE MIX PROMOTION MIX PRICE MIX PHYSICAL DISTRIBUTION CHANNELS OF DISTRIBUTION
      • Transportation
      • Inventory Management
      • Materials Movement
      • Communicating
      • Order Processing
      • Retailer
      • Wholesaler
      Physical Distribution as a part of the Marketing Mix
    • 5.
      • The main constituents of Physical Distribution cost are:
      • PDC = T + W + S
      • Where PDC = Total Physical Distribution cost
      • T = Total Transportation Cost
      • W = Total Warehousing Cost
      • S = Total cost of the sales lost due to the non availability of product at the right time .
    • 6. When a firm runs out of Stock, customers can Permanently Switch to a new Seller for all purchases Switch to new Seller while Merchandise Is not available Purchase a Substitute Product from The same seller Wait until Merchandise is available Most desirable action Least Desirable Action What happens when a firm has stock shortages
    • 7. Role of Physical Distribution System
      • Increased Market Share
      • Creation of Utilities
      • Price Stabilization
      • Improved consumer services
      • Cut in Distribution costs
    • 8. Factors Governing Logistics System
      • Distribution Channels
      • Component Availability
      • Market
      • Resource Position
      • Product

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