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The total system approach and total cost approach are important concepts in marketing, particularly in the management of physical distribution and logistics. Both approaches emphasize coordination, efficiency, and the achievement of overall marketing objectives rather than concentrating on individual activities in isolation. The total system approach considers the entire marketing and distribution system as an integrated whole. Under this approach, activities such as purchasing, transportation, warehousing, inventory management, material handling, order processing, and distribution are not treated as separate functions. They are interdependent parts of one system. A decision taken in one area can influence the performance and cost of other areas. Therefore, marketing managers should evaluate the effect of each decision on the performance of the complete system. For example, a firm may decide to maintain a large ___ _______ _______ ___ _______.
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