Warehousing is a productive function because it increases the?

A. quantity of goods
B. utility of goods
C. quality of goods
D. price of goods

Correct Answer:

Option B – utility of goods

Explanation

The efficient management of warehouses helps to optimise the existing production and distribution processes and greatly assist in the goal of cost reduction and service enhancement. Warehousing network plays a major role in the success of the physical distribution of products. A warehouse provides a central location for receiving, storing and distributing products. its needs and importance include;

1. quality of goods
2. regular supply
3. stock of trade
4. price stability
5. seasonal products
6. perishable goods
7. continous production