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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:

  1. Storage — providing safe space to hold goods until required.
  2. Price stabilisation — holding surplus stock off the market during a glut and releasing it later, evening out price fluctuations.
  3. Risk-bearing — the warehouse-keeper bears the risk of loss/damage to goods in its custody.
  4. Financing — the warehouse receipt can be pledged with a bank to raise a loan against the stored goods.
  5. Grading and packing — sorting, blending and repacking goods into standard, saleable lots.
  6. 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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