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Explain the following… (Business Studies 2026 66/1/1 Q34b)

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Business StudiesCBSE Class 12 · Board exam 2026, set 66/1/1 · 6 marks · Long answer

CBSE Class 12 Business Studies 2026: question 34(b)

Set in the CBSE Class 12 board exam of 2026, paper 66/1/1, section D, question 34(b), for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q34(b) · 6 marks · Long answerMarketing

Explain the following components of physical distribution :
(i) Order processing
(ii) Warehousing
(iii) Inventory control

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 66/1/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

Orders flow opposite to goods.

Hint 2

Higher stock = better service but higher cost.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. (i) Order processing: Orders flow from customers to manufacturers; accurate and speedy processing prevents late or wrong deliveries and customer dissatisfaction.

    2 marks

  2. (ii) Warehousing: Storing and assorting goods to create time utility, needed because production and consumption happen at different times.

    2 marks

  3. (iii) Inventory control: Deciding the level of inventory, balancing customer service against carrying cost, based on a correct estimate of demand.

    2 marks

Answer: Order processing: accurate, speedy handling of orders; warehousing: storage creating time utility; inventory control: balancing service and cost.

Where the marks are

  • Each component explained, 2 marks

Revise the chapter

Practise this chapterBoard-style questions from Marketing, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 66/1/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.