【正文】
ralize purchasing while Oriental likes retailing especially Chinese who prefer food fresh. Base on the lifestyle, retailing could be a better way for Oriental countries than in Western.The ponents of distribution: A firm’s distribution objectives will ultimately be highly related—some will enhance each other while others will pete.(University of Southern California, para1)From the objective, the distribution planner will be able to refine the ponents of the distribution planchannels, production, warehousing, inventory, transportation and order processing systems.Key issues of distribution:Cost (FIGURE1 JohnWiley amp。 Sons P8)Since international markets involve greater distances physical distribution costs are relative higher. But the additional costs of servicing overseas markets involve more than those of transport cost alone. There is a substantially increased packaging cost, the requirement to improve either the product packing or the carton strength to withstand the increased physical demands of transport to multinational markets. Despite of those costs, the costs of administration are substantially higher for international management. And often documentation is incorrectly pleted, leading to a further increase in cost as payment will be delayed until new documents are dispatched. (Alan West P74)Transport costsAdequate cost data are required to determine the type of vehicle it is most economic to use in any business. Since a vehicle is only in economic use when it is moving with a revenuepaying load, what is needed is information about how much time is spent in the garage, on maintenance, loading and unloading, how full the vehicle is loaded for each trip, how much the size of each drop in relation to its value and how many the mileage for each drop were factors influence the transport cost directly. Warehousing costsDistribution means more than delivery, but warehousing. Three major parts consist of the cost of running a warehouse. First of all, there is depreciation or rental on the building and any equipment used inside it such as racking, conveyors and forklift trucks. Secondly, there is the cost of the personnel required for handling, documentation and management. Thirdly, the necessary services such as fuel, electricity and water have also to be taken into account. The cost relationships of stockManufacturing cost. The lowest unit cost of manufacture will usually involve availability of finished product in excess of demand during certain periods. The surplus creates a stock cost.Demand. The frequency distribution of demand is the main factor. And the problem is the frequency can only be deduced from historical sales data which may not always be relevant to what will happen in the future, and involves fairly sophisticated calculations when related to the amount of safety stock necessary to satisfy that demand.Lead Times. To satisfy any given demand, stock levels will be determined by the supply lead time the time it takes for an order for fresh supplies to be fulfilled. The shorter lead time, the lower the stock level required. Therefore, it is necessary to