Explain the working of third barrier of exchange in channels distribution.

The third barrier arises through the variation in quantities and assortment demanded. Manufacturers usually produce large quantities of an item or a class of items whereas the consumers purchase only a restricted quantity of a wide variety of items at a time. When producers specialize within production of some products, the consumers require a very wide variety of items to accomplish their needs and requirements. Therefore, make possible the exchange task, exact quantities and unique assortments should be built up from the range of products produced.