Question : Statement 1: Physical distribution involves activities related to transportation and storage.
Statement 2: Physical distribution has no impact on customer satisfaction and business performance.
Option 1: Both statements are correct.
Option 2: Statement 1 is correct, and statement 2 is false.
Option 3: Both statements are incorrect.
Option 4: Statement 2 is correct, and statement 1 is false.
Correct Answer: Statement 1 is correct, and statement 2 is false.
Solution : The correct answer is (b) Statement 1 is correct, and statement 2 is false.
Statement 1 is correct. Physical distribution involves all of the activities related to the movement and storage of goods from the point of production to the point of consumption. This includes transportation, warehousing, inventory control, order processing, and packaging.
Statement 2 is false. Physical distribution has a significant impact on customer satisfaction and business performance. For example, if a business is unable to deliver products to customers on time and in good condition, it can lead to customer dissatisfaction and lost sales. Additionally, inefficient physical distribution processes can increase costs and reduce profitability.
Question : Statement 1: Physical distribution involves activities related to order processing and inventory management.
Statement 2: Physical distribution has no influence on customer satisfaction and business efficiency.
Statement 2: Physical distribution has an influence on customer satisfaction and business efficiency.
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