JAMB 2024 Economics · Question 17

Which of the following is the correct order in the chain of distribution?

Options

  1. A.Consumer -> Distributor → Retailer → Producer
  2. B.Producer → Wholesaler → Retailer → Consumer
  3. C.Retailer → Consumer → Producer → Wholesaler
  4. D.Producer → Consumer → Retailer → Wholesaler

Answer: B. Producer → Wholesaler → Retailer → Consumer

Explanation written with AI and checked against the answer key

Step 1: Analyze the question The question asks for the correct order of the chain of distribution, which is the path goods take from where they are made to the person who finally uses them.

Step 2: Explain the concept The chain of distribution (also called the channel of distribution) moves goods from the producer to the final consumer. The traditional channel has these stages:

  • Producer/Manufacturer makes the goods (e.g., Dangote makes cement or sugar).
  • Wholesaler buys in bulk from producers and sells in smaller lots to retailers.
  • Retailer buys from wholesalers and sells in small quantities to the public.
  • Consumer is the final user who buys the goods.

Goods flow forward from producer to consumer, and the consumer is always at the end of the chain.

Step 3: Check each option

  • A. It starts with the consumer and ends with the producer. This is reversed, so it is wrong.
  • B. Producer → Wholesaler → Retailer → Consumer. This is the correct flow.
  • C. The retailer comes before the consumer and producer, so it is wrong.
  • D. The consumer sits in the middle of the chain, which makes no sense, so it is wrong.

Step 4: Answer The correct order is Producer → Wholesaler → Retailer → Consumer, which is option B.

Tip: Remember P-W-R-C: "Please Wait, Receive Customer." The consumer is always last, and the producer is always first. In some shorter channels the wholesaler or retailer may be skipped, but the order never changes.

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