In the value chain model, which type of activity is directly related to production and distribution?

In the value chain model, primary activities are the ones that are directly related to the production and distribution of a company’s products or services. These activities create the core value of the product and include inbound logistics (receiving, warehousing, and inventory management), operations (transforming inputs into the final product), outbound logistics (storing and distributing the finished product), marketing and sales (promoting and selling the product), and service (activities related to maintaining the value of the product after it has been purchased).

It's essential to understand that these activities directly contribute to the physical creation of the product and its delivery to customers, which is crucial for generating revenue. In contrast, support activities provide the necessary background and infrastructure that enable primary activities to occur efficiently. These may include human resources, technology development, procurement, and firm infrastructure, which, while vital to overall operation, do not directly produce or distribute products.

This distinction highlights the focus of primary activities on tangible outputs and market interactions, making this option the correct answer.