(a) What is the normal chain of distribution? (2 marks)
(b) State any three functions of middlemen in the chain of distribution. (6 marks)
(c) Highlight any four problem involved in the distribution of goods in West Africa. (12 marks)
Explanation
(a) Producers → Wholesalers → Retailer → Consumers.
b)(i) Provide warehousing facilities.
(ii) Help to finance production.
(iii) Give credit facility to the producers.
(iv) Breaking the bulk.
(v) Provide information to the producers.
(vi) Repackaging.
(vii) Providing varieties of goods.
(viii) Provide after-sales services.
(c)(i) Large number of middlemen makes distribution complex. Consumers are made to pay high prices because of profit mark-up by numerous middlemen.
(ii) Inadequate capital/credit facilities make distributive trade to be mostly on small scale.
(iii) Poor storage facilities make it difficult for distributors to even-out supply. This usually leads to high product prices at certain periods.
(iv) Hoarding of goods to create artificial scarcity.
(v) Inadequate information about existence of market for products.
(vi) Poor transport network which results in high cost of transportation.
(vii) Difference in weights and measures make product pricing difficult.