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Chapter 7: Physical Distribution

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Our Marketing Reporting
Chapter 7 : Physical Distribution

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Chapter 7: Physical Distribution

  1. 1. W E L C O M E to our Marketing Reporting
  2. 2. TOPIC: CHAPTER 7 Physical Distribution
  3. 3. PRODUCTION The Marketin g Process Includes different processes, PRICING styles and principles SELLING
  4. 4. According to Runyon “Physical Distribution is a marketing subsystem which consists of all activities involved in the physical movement of raw materials and finished goods from producers to consumers.”
  5. 5. According to McCarthy and Perreault “Physical Distribution is the process of transporting and storing of physical goods within individual firms and along channel systems.”
  6. 6. According to Stanton “Physical distribution includes all the activities with moving the amount of the right products to the right place at the right time.”
  7. 7. According to Kotler “ The tasks involved in planning , implementing, and controlling the physical flows of materials and final goods from points of origin to points of use to meet the needs of customers at a profit.”
  8. 8. Physical Distribution Refers to the tasks involved in managing the physical flows of materials and final goods from points of origin to points of use to meet the needs of the customers and the institution.
  9. 9. CUSTOMER ORDER PROCESSING INVENTORY INVENTORY INFORMATION SYSTEM STORAGE
  10. 10. OBJECTIVE of PhysicalDistribution To reduce the overall cost of physical distribution by the proper balancing of its component functions.
  11. 11. Inventory Planning And Control Transportation Order Processing Warehousing
  12. 12. Economic Order Quantity(EOQ) It can be used to determine what quantity to order so as to minimize total inventory costs. The formula is: Q= Square root of 2TS/CI Q=EOQ T= Total Units Disposed per year S= Restocking or ordering cost I= Annual carrying cost
  13. 13. Inventory Planning And Control Transportation Order Processing Warehousing
  14. 14. Railroads Airplanes Trucks Water Pipelines Vessels
  15. 15. TRAMPERS BARGES Special Transport Agencies
  16. 16. Inventory Planning And Control Transportation Order Processing Warehousing
  17. 17. It is an important component of Physical Distribution. Warehousing decisions must be made as to the type of warehousing to be used and the number and location of warehousing facilities. PRIVATE WAREHOUSING PUBLIC WAREHOUSING
  18. 18. Private Warehouses are those owned or leased by the company. Public Warehouses are those operated by professional warehouse owners which provide storage and related physical distribution facilities on a rental basis to the firm.
  19. 19. Inventory Planning And Control Transportation Order Processing Warehousing
  20. 20. It refers to receiving, recording, filling, and assembling orders for shipment. The Customer Order origination and transmission The Firm Internal order processing and order assembly The Transport Mode Transit time of delivedry

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