An importance of warehousing is in the?

A. production of goods
B. transportation of goods
C. importation of goods
D. repackaging of goods

Correct Answer:

Option A – production of goods

Explanation

Warehouses reduce violent fluctuations in prices by storing goods when their supply exceeds demand and by releasing them when the demand is more than immediate productions. Warehouses ensure a regular supply of goods in the market. This matching of supply with demand helps to stabilise prices.