Transportation moves products to market that are geographically separated and provides value added to customers when the product arrive on time, undamaged and in the quantity required. In this way, Transportation contributes to the level of customer service which is one of the cornerstone of customer satisfaction and in general to the economic growth of a country. Because Transportation create place utility and contributes to time utility both of which are necessary for marketing efforts – i.e the availability, adequacy and cost of transportation impact on business decision. That is what product should be produced, where should they be sold, where should facilities be located and where should materials be sourced. While each activity of logistics management contributes to the level of service a company provides to its customers, the impact of transportation on customer service is one of the most significant.
REQUIRED
(a) What do you understand by Place Utility and Time Utility? (10 marks)
(b) For a company of your choice, based on the description above, physical distribution management strategy is an important business decision. Discuss. (40 marks)
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What do you understand by Place Utility and Time Utility? The whole level of enjoyment a person receives from using a specific good or service is known as economic utility. It enables one to gauge the degree of fulfilment necessary to satiate a certa...
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