Q.List the functions of Warehouses.

A warehouse stores goods safely between production and consumption, and while doing so it also protects, finances, grades and helps stabilise the price of those goods.

Warehousing removes the hindrance of time created because goods are produced at one point but consumed steadily over the year. Its functions are:

1. Storage — it provides a proper place to keep surplus goods from the time they are produced until they are demanded, so a trader need not sell everything at once.
2. Protection and preservation — goods are guarded against heat, moisture, dust, pests and theft, and perishables are kept in cold storage, so their quality is maintained.
3. Risk-bearing — once goods enter the warehouse the warehouse-keeper takes responsibility for their safety and bears the risk of loss or damage.
4. Financing — the warehouse issues a warehouse receipt against stored goods; the owner can pledge this receipt with a bank and obtain a loan, so capital is not locked up in stock. …