Decision Areas In Warehousing


There are two important decisions in Warehousing. Which are as follows :-

A)  Warehousing Location : The following factors influence the location of a warehouse:-

------  Transport facilities available.

------  Transportation cost of serving the market area.

------  Transportation cost of supply to the warehouse.

-----  Product price, customers' expected level of service and the resulting inventory carrying costs.

-----  Exise duties and other taxes assesed in the area.

-----  Labour supply and costs.

-----  Land and construction cost.

-----  Availability of power, water and communication.

-----  Climatic conditions.

-----  Attitude of residents and government towards the establishment of the warehouse.

-----  Potential for future expansion.

-----  Location of warehouse of competitors.

B)  Own versus lease versus use Public Warehouse :-

A warehouse may be privatly used or publically used . If a company makes goods and these are stored exclusively in some warehouse, then such warehouse known as Private warehouse.

A private warehouse may an owned or leased one .

If a warehouse is used on the basis of some terms and conditions by many users, then that warehouse is known as Public warehouse.


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