The physical distribution function of a firm is a complex process. It consists of all the activities involved in the flow of goods from the raw material supplier to the final consumer and incorporates the major activity centres of purchasing, warehousing, transportation, order processing, and inventory control. The goal of a firm's distribution operation is to insure that established customer service levels are achieved at a minimum total cost.
Lancioni, R. and Grashof, J. (1972), "PHYSICAL DISTRIBUTION ORGANISATION AND INFORMATION SYSTEMS DEVELOPMENT:: Their Status among American Business Firms", International Journal of Physical Distribution, Vol. 3 No. 3, pp. 183-190. https://doi.org/10.1108/eb014278
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