Question

Explain the advantages of warehousing functions.

Answer 1

1. It safeguards the stock for the merchants who do not have a storage place.
2. Warehouses reduce the distribution cost of the traders by storing the goods in bulk and allow the trader to take the goods in small lots to his shop.
3. It helps in the selection of a channel of distribution. The producer will prefer whether to a wholesaler or retailer.
4. It assists in maintaining the continuous sale and avoids the possibilities of “Out of Stock”.
5. It creates employment opportunities for both skilled and unskilled workers to improve their standard of living.