Determination should include
- a distribution method (e.g., truck, train, airplane, pipeline) for each product and the rationale behind the choice (e.g., based on speed, cost, efficiency, location)
- a method of storage (e.g., private, public, bonded, warehouse, distribution center).
Process/Skill Questions:
- When is speed more important than cost in distribution?
- How does geography limit distribution choices?
- How might outsourcing affect the physical distribution methods used?
- Why is distribution so important to the concept of place in the marketing mix?
- Why do companies need to be concerned with economic and political issues involving energy sources?
- What costs are associated with physical distribution?
- How does the relationship between material management and physical distribution compare?