Question

Explain three reasons why warehousing is important.

Answer 1

The following are some of the reasons why warehousing is so important:

1. Seasonal Production: Seasonally produced goods (such as agricultural products) must be stored in order to be available to consumers throughout the year. It is critical to store such items in order to offer them to consumers.
2. Seasonal Demand: Many commodities (such as woollen material, umbrellas, raincoats, fans, and so on) are manufactured all year, yet their demand is seasonal. Until the start of the next season, such commodities must be stored and conserved in a warehouse.
3. Production at One Place but Demand at Various Places: When items are manufactured at a specific location, they must be stored in numerous warehouses close to the clients. It allows things to be made available to customers whenever and wherever they are needed.