Distribution

Distribution Test Review-test on Thursday, January 23, 2025

Channel of Distribution- the path a product takes from its producer or manufacturer to the final user

Wholesalers - Businesses that buy large quantities of goods from manufacturers, store the goods, and then resell them to other businesses

Retailers - sell goods to the final consumer for personal use

Direct Distribution - when the producer sells goods or services directly to the customer, with no intermediaries

Indirect Distribution - involves one or more intermediaries

Physical Distribution - comprises all the activities that help to ensure that the right amount of product is delivered to the right place at the right time

Inventory - Amount of goods stored is called an

Storage - the holding of goods until they are sold

Steps in stock handling process - Receiving goods, checking merchandise, marking merchandise, transferring merchandise

Blind Check - receiver counts and records the quantities delivered on a dummy invoice; then the information is compared to the original invoice; considered most accurate but time consuming

Direct Check - receiver checks merchandise against the original invoice; faster but errors may be introduced, and some receivers do not actually check the amount

Spot Check - random check of one carton in a shipment; carton is checked for quantity and quality; if passes inspection, the remaining cartons are assumed to be in same condition; used to check supermarket/drugstore deliveries

Quality Check - check the workmanship and general characteristics of the merchandise; usually done for products with value; performed by the buyer, not a receiver

Universal Product Code(UPC) - used for source marking. Price is marked before delivering the merchandise to retailer

Two things found on a price ticket - price, store numbers, model or style numbers, color, sizes, fabrics, manufacturer’s number, lot numbers

Trucking - Most frequently used transportation mode

Railroads - Trains transport nearly 6% of the total intercity ton-mile of freight. Move heavy, bulky freight: coal, steel, lumber, chemicals, grain, farm equipment, automobiles over long distances

Air cargo - Less than 1% of the total ton-miles of freight shipped. High-value, low-weight, time-critical items usually shipped this way

Waterways - Inland shipping-shipping from one port to another on connecting rivers and lakes Intracoastal shipping-shipping of goods on inland and coastal waterways between ports along the same coast. International waterways-oceans, rivers that connect continents and countries

Pipelines - Used to transport oil and natural gas