what is the wearhousing?explain the function of wearhousing?
Answers
Explanation:
A warehouse may be defined as a place used for the storage or accumulation of goods. The function of storage can be carried out successful with the help of warehouses used for storing the goods. ... By storing the goods throughout the year and releasing them as and when they are needed, warehousing creates time utility.
Answer:
Warehousing is the process of storing physical goods before they are sold or further distributed in a dedicated warehouse or storage facility. ... At that point, a business will have to rent storage space, lease a warehouse, or outsource logistics to a third-party and store inventory in their warehousing facilities.
Functions of Warehousing:
1. Storage:
This is the basic function of warehousing. Surplus commodities which are not needed immediately can be stored in warehouses.
2. Price Stabilization:
Warehouses play an important role in the process of price stabilization. It is achieved by the creation of time utility by warehousing.
3. Risk bearing:
When the goods are stored in warehouses they are exposed to many risks in the form of theft, deterioration, exploration, fire etc.
4. Financing:
Loans can be raised from the warehouse keeper against the goods stored by the owner. Goods act as security for the warehouse keeper. Similarly, banks and other financial institutions also advance loans against warehouse receipts
5. Grading and Packing:
Warehouses nowadays provide the facilities of packing, processing and grading of goods. Goods can be packed in convenient sizes as per the instructions of the owner.
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