The lower a product's value density, the more localized the distribution system.

Question

Quizplus · Accepted Answer

This statement is true. Products with lower value density, such as bulky or perishable items, are often distributed in a more localized manner due to the higher transportation costs associated with moving them over long distances. This is in contrast to high-value items with high value density, such as electronics or luxury goods, which can be distributed over longer distances because the transportation costs represent a smaller percentage of the overall product value.

The Lower a Product's Value Density, the More Localized the Distribution