Q.Which of the following is not a component of 'Physical Distribution'? (A) Inventory control (B) Standardisation and grading (C) Order processing (D) Transportation
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Start your 14-day free trial to unlock the full solution →Physical distribution is the set of activities that move finished goods from the producer to the customer. Standardisation and grading is a marketing function that happens before distribution, not a part of the physical movement and storage of goods. The correct answer is (B).
Physical distribution is about getting the product into the customer’s hands — physically. Think of it as the logistics backbone of marketing: you have a product ready, and you need to move it, store it, and deliver it efficiently. The four classic components are transportation, warehousing, inventory control, and order processing. Each one deals with the flow of goods.
Standardisation and grading, on the other hand, is a quality-related activity. It sets uniform standards (like “Grade A” apples) and sorts products into categories. This happens at the production or procurement stage, not during the movement of goods. It’s a marketing function, but it belongs to the “product” or “packaging” side, not to physical distribution.
Let’s check each option:
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Inventory control — This is a core part of physical distribution. You need to decide how much stock to keep at warehouses and retail points so that orders can be fulfilled without delay or overstocking. Without it, distribution would either run out of goods or pile up unnecessary costs.
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Standardisation and grading — This is the odd one out. It sets quality benchmarks and sorts products (e.g., wheat into grades I, II, III). It helps in marketing and pricing, but it does not involve moving, storing, or delivering goods. It’s a pre-distribution activity.
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Order processing — This covers everything from receiving an order to preparing it for shipment. It includes checking stock, invoicing, and packing. It’s a direct link between the customer’s request and the physical movement of goods — so it’s definitely part of physical distribution. …
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