Learning Objectives Chapter 15

5.) Identify the tasks in the physical distribution process.

• Transportation -- The function of transportation involves actually moving goods from seller to buyer. The basic modes of transportation are truck, rail, air, water, and pipeline. Transportation is the most costly distribution function.
  
  
• Warehousing -- After transportation, the most costly function of physical distribution is warehousing. Marketers must decide how many warehouses will be used and where they will be located. Public warehouses are businesses that offer space and inventory support services for a rental fee.
  
  
• Inventory Management -- Marketers must balance the advantages of maintaining inventory with the costs associated with carrying inventory. To keep track of inventories, organizations often use Universal Product Codes (UPCs), commonly called bar codes.
  
  
• Order Processing -- Order processing includes receiving an order, processing the order, filling the order, and billing the order. Computer software is available to help in order processing.