Which of the following is not a component of physical distribution?

Option 1 -> Utility and demand are marketing concepts related to customer value and market needs, not physical distribution activities.

Option 2 -> Inventory control is a key component involving management of stock levels and inventory optimization.

Option 3 -> Warehousing is a core component involving storage and handling of goods in distribution centers.

Option 4 -> Order processing is an essential component involving receiving, fulfilling, and tracking customer orders.

Hence, Option 1: Utility and demand -> Utility and demand are economic and marketing concepts that relate to the value creation and customer needs, rather than the actual physical movement, storage, and handling of goods. Physical distribution focuses on logistics activities like inventory control, warehousing, order processing, transportation, and materials handling. -> correct