Correct Answer: Assertion is true, but the reason is false.

Solution : The correct answer is (c) Assertion is true, but the reason is false.

The assertion is true. Factors affecting physical distribution indeed include transportation, warehousing, and inventory management. These elements are fundamental aspects of physical distribution in the supply chain.

The reason is false. Physical distribution plays a significant role in improving supply chain efficiency and customer satisfaction. Efficient transportation, effective warehousing, and optimized inventory management are key components of a well-functioning supply chain. When physical distribution is managed effectively, it can lead to improved supply chain efficiency by reducing costs, minimizing delays, and enhancing overall operational efficiency. Additionally, it directly impacts customer satisfaction by ensuring timely delivery, accurate order fulfillment, and product availability. Therefore, the reason is not a correct explanation of the assertion.