What is the purpose of a distribution plan?

• A. To determine employee shift schedules.
• B. To coordinate the movement of goods from suppliers to customers, defining routes, modes, timelines, and responsibilities.
• C. To set the annual budget for marketing.
• D. To select suppliers based on price alone.

Answer: (B)

A distribution plan is about coordinating the movement of goods from suppliers to customers. It lays out how items will travel, which routes and transportation modes will be used, the timelines for each step, and who is responsible for each part of the process. This keeps deliveries on track, minimizes costs, and ensures customers receive what they need when they expect it by aligning warehousing, carriers, and inventory points with service goals.

Options about employee shift schedules, annual marketing budgets, or choosing suppliers based on price alone don’t address how products actually move through the supply chain, who handles each leg of the journey, or the timing and responsibilities required to meet delivery commitments.