Explain warehousing and its functions.

Solution

Warehousing : It refers to preserving a quantity of goods for use when required.

Functions of warehousing are as follows :

1. Consolidation : In this function the warehouse receives and consolidates, materials/ goods from different production plants and ispatches the same to particular customer on a single transportation shipment.

2. Break-Bulk : This functions refers to the shipment of bulk quantity of goods from the production plants to the distribution warehouse and then reshipment in small quantities to different customers.

3. Stock Piling : The next function of warehouse is the seasonal storage of goods to select business for eg. Agriculture products are harvested at specific times with subsequent consumption throughout the year.

4. Value-added Services : Certain value added services are also provided by the ware houses, such as in transit mixing, packaging and labeling.

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