Exercises · Q5
Q.State any four functions of warehousing.
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✓ Free question
Any four of the following, briefly explained, answer this question:
- Storage — providing safe space to hold goods until required.
- Price stabilisation — holding surplus stock off the market during a glut and releasing it later, evening out price fluctuations.
- Risk-bearing — the warehouse-keeper bears the risk of loss/damage to goods in its custody.
- Financing — the warehouse receipt can be pledged with a bank to raise a loan against the stored goods.
- Grading and packing — sorting, blending and repacking goods into standard, saleable lots.
- Transportation support — convenient location reducing the cost/time of onward movement of goods.
✓Final answer
Any four such as: storage, price stabilisation, risk-bearing, financing via the warehouse receipt, grading/packing, or transportation support.
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