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Long Answer Questions · Q13

Q.Explain the meaning and importance of warehousing and transportation in physical distribution.

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Warehousing is the storing of goods, under suitable conditions, between the time they are produced and the time they are actually required in the market. It matters because production and demand are rarely perfectly matched moment-to-moment — many goods are produced continuously through the year but demanded seasonally (or vice versa), so warehousing lets a firm hold stock during periods of low demand and release it when demand rises, without disrupting either its production schedule or its ability to supply the market promptly.

Transportation is the physical movement of goods from the factory or warehouse to wholesalers, retailers, or directly to the final consumer. Choosing the right mode of transport — road, rail, water, or air — involves balancing speed (how quickly the goods must reach the market, especially for perishables), cost (heavier/bulkier goods over long distances are often cheaper by rail or water than by road or air), and the nature of the goods themselves (fragile, perishable, or hazardous goods may need special handling that only certain modes can provide). …

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