Which of the following best describes the traditional chain of distribution?

Prepare for the OCR Business Paper 1 Test with engaging quizzes featuring flashcards and multiple-choice questions. Each question includes hints and explanations, ensuring you're well-prepared for your exam!

The traditional chain of distribution typically follows a path that starts with the manufacturer and ends with the customer, passing through various intermediaries. The correct description outlines this progression accurately: the manufacturer produces goods, which are then sold to a wholesaler who purchases in bulk. The wholesaler subsequently sells to retailers who carry the products in smaller quantities for direct sale to consumers.

This flow mirrors the typical supply chain in which each party plays a distinct role focused on increasing efficiency and accessibility to the final consumer. Manufacturers focus on production, wholesalers manage the distribution of large quantities, and retailers bridge the gap between the wholesaler and the end customer by providing a retail space and customer service.

The other options incorrectly reflect this traditional flow. For instance, having the customer come before the manufacturer or placing the retailer before the wholesaler undermines the established sequence where production leads to wholesale distribution before reaching the end consumer. Each step in the chain serves a specific function, and following the standardized route helps ensure that products are effectively moved from production to point of sale.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy