Distribution costs are an important element in the total cost picture of most companies. Broadly speaking, distribution costs include all costs associated with the transfer of finished goods to the consumer. Profitable operation requires that these costs be analysed and controlled efficiently. While there are difficult technical problems in the area of cost‐determination for physical distribution, techniques for coping with them may be spotted by looking at other areas where cost‐estimation appears to be equally elusive. We note that multiple regression analysis (MRA) has been used to study the distribution of consumer credit. Application of other newer techniques includes use of computer simulation in providing more effective emergency ambulance service and statistical work sampling to estimate costs incurred by the Post Office Department in handling mail prior to delivery, classified by class of mail and service. These applications are in areas at least as complex and difficult as distribution costing and suggest to us that technical problems in this area are not necessarily any more or less difficult than those in other areas of costing.
Leslie Livingstone, J. and Sathe, V. (1972), "THE STAFF CONTROLLER FUNCTION IN PHYSICAL DISTRIBUTION MANAGEMENT", International Journal of Physical Distribution, Vol. 3 No. 1, pp. 55-59. https://doi.org/10.1108/eb014268Download as .RIS
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