Question

ADVANTAGE AND DISADVANTAGE OF GOVERNMENT WAREHOUSES

Answer 1

Answer:

Advantages Of Government Warehouse :

Storage facilities can be availed at desired locations as and when required, and at a know cost.

The goods can be despatched to the warehouses with the warehousemen as the consignee for the clearance of the goods at the railhead and transportation to the warehouse.

Disadvantages Of Government Warehouse :

The biggest disadvantage of having a warehouse is that the initial setup cost for setting a warehouse is huge and companies that are small are not able to afford the initial set up expenses of warehouse resulting in them depending on the public warehouse or rented warehouse for storing their goods.

Answer 2

Advantages:

• Government warehouses abolished monopoly.
• Government warehouses are mostly climate-controlled, clean, well managed, and regulated properly.
• Most of the warehouses are well secured with fireproof and waterproof.
• It will be maintained in such a way to resist most natural disasters.

Disadvantages:

• Many small firms are opened at the same point leads to the competition making them lower their prices.
• Because of the low cost, most people use this kind of warehouse and so space availability will be a major problem.

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