There are examples of what can be done by the retailer within his store, but perhaps the biggest opportunity for cost-reduction stems from cooperation between manufacturer and distributor in analyzing the total costs involved in moving the product from the factory to the hopper’s basket. A helpful technique in this connection is the concept of “direct product profit” which is widely used in the United States.
　　This is a technique for analyzing very precisely the costs and profits associated with each product line, with a view to isolating opportunities for cost reduction. For example, the in-store handing costs for particular item may be reduced if the manufacturer puts it in a large case or reduces the number of layers in the case. With the growing importance of prepackaging both for perishable items like meat and for non-food products, it is essential that the container should facilitate quick unloading and easy display.
　　More obvious is the case for cooperation in reducing the costs of delivery and unloading; the night delivery experiment in Central London is an example of this. Many shops lack proper unloading facilities, often because the local authorities or private developers who built them were not aware of what was needed. Many retailers do not employ modern handling techniques.
　　Some consumer goods manufacturers, such as Unilever, are playing a big part in streamlining the distribution system, simply because they are “market-oriented” companies which recognize the importance of low distribution costs. Even in Unilever, Lord Cole recalled the bad old days when distribution was looked upon as the least important of costs.
　　The process of distribution will gradually be made less labor-intensive; the difficulty of finding additional labor, apart from its cost, is the major factor behind.
　　1. The cost-reduction can be best achieved by ______
　　A. cooperation between wholesalers and retailers
　　B. competition between manufacturers and retailers
　　C. the retailer in his store
　　D. cooperation between manufacturers and distributors
　　2.“direct product profit” is used to ______
　　A. reduce the number of layers involved
　　B. analyze the exact costs and profits
　　C. prepackage perishable and non-food goods
　　D. make unloading quicker and display easier
　　3. Lack of proper unloading facilities may______
　　A. make cost-reduction rather difficult
　　B. encourage retailers to use modern handling techniques
　　C. make the local authorities aware of what was needed
　　D. reduce the costs of delivery and unloading
　　4. According to the passage, in the bad old days Unilever______
　　A. realized the importance of low distribution costs
　　B. regarded distribution as the least important of costs
　　C. streamlined the distribution system
　　D. was a “market-oriented” company
　　5. Which of the following statements is NOT true of the passage?
　　A. Private developers were unaware of the importance of unloading facilities
　　B. The use of the container may well complicate unloading　　
       C. The costs involved in distribution should be carefully analyzed
　　D. Less labor-intensive distribution process results largely in the difficulty of finding additional labor.

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