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State any two characteristics of an ideal warehouse. - Commercial Studies

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Questions

State any two characteristics of an ideal warehouse.

Discuss the essential features of an ideal warehouse.

Explain the essential characteristics of goods storage facilities.

Answer in Brief

Solution

  1. Proper location: An ideal warehouse should be located in a place where buyers and sellers of goods can reach it conveniently and economically. It must be centrally located so that loading, unloading and transportation of goods take the least amount of time and money.
  2. Adequate space: In an ideal warehouse, sufficient space should be available so that a maximum amount of goods may be stored.
  3. Suitability: An ideal warehouse should be suitable for the commodity to be stored. For example, cold storage is suitable for perishable goods, whereas a fire-proof warehouse is required for inflammable goods.
  4. Proper safety: Goods should be protected from heat, cold, water, insects, corrosion, fire, etc. Adequate protection must also be provided against pilferage and theft of goods.
  5. Low cost: The cost of operating and maintaining the warehouse should be reasonably low. The benefits must be more than the cost.
  6. Scientific layout: Proper planning at the time of construction is necessary to ensure proper layout. These must be proper arrangements for inspections, measurement and identification of goods.
  7. Effective control: An ideal warehouse must permit reasonable control of the goods kept therein. The staff of the warehouse should take proper care of the goods through effective supervision.
  8. Provision for moving vehicles: There should be adequate provision for the free movement of trucks, tempos and other vehicles.
  9. Services: An ideal warehouse should provide packing, grading, blending and inspection facilities. Provisions should also be made for the quick delivery of goods.
  10. Security: An ideal warehouse should facilitate pledging or hypothecation of stocks for raising loans. It must provide for the supervision and control of the creditors over the goods pledged to them. It must be capable of being insured at lower premium rates.
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Notes

Students should refer to the answers according to their questions.

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Chapter 13: Logistics and Insurance - EXERCISES [Page 234]

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