ABSTRACT
Physical supply management involves the transportation and storage of goods from suppliers to the manufacturer of finished products. Depending on the condition of sale, it could be the responsibility of the supplier or the manufacturer; however, in either situation, it ultimately becomes the cost to
the manufacturer. Physical supply management also involves logistic management for moving and storing of raw materials, such as iron ore, steel rods, sheet steel, components, and subassemblies, from supplier to the manufacturer. Since the logistic problems of moving and storing raw materials are quite different from those of moving components and subassemblies of a finished product, the design and location of factories, warehouses, and the transportation systems are quite unique and different, depending on the needs of each type of goods.
