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Physical Distribution Definition

Physical distribution is the movement & storage of finished goods from the end of production to the customer One person’s distribution is another person’s supply. Physical Distribution Definition. SUPPLIERS. CU S TOMER. DISTRIBUTION SYSTEM. MANUFACTURER. Manufacturing

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Physical Distribution Definition

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  1. Physical distribution is the movement & storage of finished goods from the end of production to the customer One person’s distribution is another person’s supply Physical Distribution Definition

  2. SUPPLIERS CU S TOMER DISTRIBUTION SYSTEM MANUFACTURER Manufacturing Planning and Control Physical Distribution Physical Supply DOMINANT FLOW OF PRODUCTS AND SERVICES DOMINANT FLOW OF DEMAND & DESIGN INFORMATION Supply Chain (Logistics System)

  3. Transportation: Accounts for 30-60% of dist. Costs, adds place value Distribution Inventory: Accounts for 25-30% of cost, adds time value Warehouses (distribution centers): Store inventory Materials Handling: Moves goods Protective Packaging Order Processing & Communication Activities in Physical Distribution

  4. 5 Modes of Transportation Rail Large fixed investment, good for bulky commodities over great distance

  5. 5 Modes of Transportation Road • Relatively small investment, fast, flexible service for small cargoes

  6. 5 Modes of Transportation Air • High capital costs, high variable costs, high speed of service & flexibility

  7. 5 Modes of Transportation Water • Low costs, fixed costs absorbed over large volumes

  8. 5 Modes of Transportation Pipeline • High capital / low operating costs • Very high volume • Obviously for viscous products

  9. 5 Modes of Transportation Multi-Modal • Ship – Rail – Truck • Ship – Truck • Rail – Truck • Air – Truck • Pipeline – Truck

  10. Each of these 5 modes of transportation have: WAYS TERMINALS VEHICLES (except pipelines). 5 Modes of Transportation

  11. Location Loading Routing Schedule Volume Logistics Information Systems

  12. Line-haul Pickup & delivery Terminal handling Billing & collecting Transportation Cost Elements

  13. Number of customers Geographic distribution of customers Customer order size Number & location of plants & distribution centers Shipping Patterns

  14. Identify the product Contain and protect the product Contribute to physical distribution efficiency In many applications, the environmental impact of packaging is significant. Roles of Packaging

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