Arrange the following stages of a traditional distribution channel in the correct order, starting from the original producer down to the final consumer.
- 1The manufacturer produces goods in large quantities.
- 2The wholesaler purchases in bulk and stores the goods in a central warehouse.
- 3The retailer buys smaller quantities from the wholesaler to stock local shop shelves.
- 4The consumer buys individual units from the retailer for personal use.
Answer
The correct sequence starts with the manufacturer producing goods in bulk, followed by the wholesaler purchasing in bulk for warehousing, then the retailer buying smaller quantities to stock local shelves, and ends with the consumer buying individual units.
In home trade, goods flow sequentially from the manufacturer (production), to the wholesaler (bulk-breaking and warehousing), to the retailer (convenient local selling), and finally to the consumer (end use).
Step-by-Step Solution
Key Concept
Traditional Channel of Distribution Flow