Choosing the distribution channel for meat products

Abstract

In the paper, the author deals with the problem of choosing the distribution channel and offers the use of selected methods which should contribute to the final distribution process decision for the firm pursuing production and sale of meat and smoked goods. It is direct qualitative estimate approach, weighted factor summing approach and distribution cost approach. The last two methods try to quantify the decision criteria. In case of the weighted factor summing approach, the weights are assigned to each of the decision factors and at the same time each channel alternative is rated and the overall weighted factor score is computed which is the basis of setting up the scale of distribution variants. Distribution cost analysis made for specific situation proves higher effectiveness with distribution through the own retail selling unit than with sale by intermediary (concretely by 350,533 CZK). However, a single numerical result cannot be used as the only evaluating indicator but it is necessary to consider the other factors which would increase the objectivity of the final decision.

Keywords

• calculation
• criterion
• cost
• sale
• retail unit
• distribution
• distribution channel
• intermediary