ABSTRACT
This chapter considers the physical distribution as part of a marketing process rather than a technique. Physical distribution formed the essence of the retail, mainly the bridging of the imbalances of time, location and quantity. The purpose of the physical distribution is to achieve the maximum availability of the correct goods to the consumer, at the right time and at the lowest possible cost. Every order that goes out the door is accompanied by costs, both for the retailer and for the supplier. When production planning of discontinuous, strongly fluctuating flows is determined far in advance, it is almost impossible to cancel ordered products, unless very big mistakes were made by the supplier. If the optimal order size is lower than the minimum stock, the retailer will always seek to maintain the minimum order frequency. The chapter shows that the actual transport of goods from the supplier to the store is causing more and more problems.
