Question

The benefits of public warehousing include __________.

(a) Control

(b) Flexibility

(c) Dealer relationship

(d) None of the above

Answer 1

Public warehouses provide a high degree of flexibility to its agents in the following aspects.

• Storage of goods: Goods can be stored as per the convenience and preferred locations of the agents.

• Negligible fixed costs: The agents need to incur only negligible fixed costs to store their goods.

• Safety: Safety is ensured, and the risk of loss by theft is minimal.

• Other benefits: Other benefits include facilities such as packaging and labelling.

Hence, the correct answer is option (b).