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 Form 3 Business Studies: Chain of distribution online lessons

Circumstances under which a wholesaler is essential in chain of distribution.

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Answer Text:
Circumstances under which a wholesaler is essential in chain of distribution.
(i) Where market is spread out.
(ii) Where producers have inadequate capital to set up own distribution points.
(iii) Where infrastructure is poor.
(iv) Where state policy may require producers to channel good through wholesalers.
(v) Where there are small scale retailers.
(vi) Where nature of goods require use of wholesalers.
(vii) Where producer requires readily finance.
(viii) Where producer lacks transportation facilities.
(ix) Where producer wants to spread out the risks.
(x) Where the producer wants to promote sales.


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