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Warehousing and Distribution
The role of warehouses in a physical distribution system is presented.

Role of Warehouses
Warehouses serve three important roles.

Warehousing and Transportation Costs
Any distribution system should try to provide the highest service level at the lowest possible cost.

Market Boundaries
It is the line between two or more supply sources where the laid-down cost is the same.

Distribution Centers and Transportation Costs
As more distribution centers are added, the savings in transportation costs decrease

Multi-Warehouse Systems and Costs
The result of adding more distribution centers to the physical distribution system.

System Service Capability
It can be estimated by the percentage of the market served within a given period by the distribution system

Physical Elements of Carriage
To provide transportation service, any carrier, whatever mode, must have certain basic physical elements

Transportation by Mode
The carriers of transportation can be divided into five basic modes.

Transportation Cost Elements
There are four basic cost elements in transportation

The Purchase of Transportation Services
Use of transportation services involves a form of purchasing.

Shipping Terms
A number of terms are used in international trade to describe sellers' and buyers’ rights, duties and risks.