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.