Write Short Notes on the following:
Functions of warehouses
ANSWER:
The following are some of the functions performed by warehouses:
i. Stockpiling - Warehouses facilitate the storage of goods and raw materials that are not required for immediate sale or manufacturing.
ii. Price stabilisation - In situations of varying demand and supply of goods, warehouses balance the supply and demand of goods. Thus, they help in stabilising the prices of goods in the economy.
iii. Offering value-added services - Warehouses offer various value-added services to producers such as the grading, packaging and labelling of products.
iv. Financing - The owner of the goods and raw materials stored in a warehouse can use the warehouse receipt as a security against which he/she can borrow money from banks or other financial institutions.
