Why Do We Need A Warehouse

Topics: Manufacturing, Supply and demand, Season Pages: 2 (499 words) Published: May 19, 2015
Do we need a warehouse?
Roles and Functions of Warehouse
The role of warehouse is important for the trade. Traders, carriers, retailers, exporters, manufacturers and wholesalers need warehouse because of the different functions of warehouse. Warehousing really useful for them. 1. Seasonal Production

Some products like agricultural products and fruits are harvested on certain season. Manufacturers need to bridging the time gap between production and consumption of goods. So, they need the warehouse for proper storage for the products. They can supply and sell when the products is needed from the market. 2. Seasonal Demand

There are certain goods which are demanded seasonally, like umbrella in the rainy season, pamelo and mandarin during the Chinese New Year. For example, the mandarin imported from China and keep for a certain period in warehouse before Chinese New Year. Therefore, there is a need to store these goods in a warehouse to make them available at the time need. 3. Continuous Production

The adequate supply of raw materials are needed to ensure the continuous production of goods for a factory. Therefore, the manufacturers need to keep sufficient quantity of stock of raw materials in the warehouse. 4. Large-Scale Production

Production is take place to meet the future demand of the products from the market. Manufacturers produce goods in large quantity to enjoy the benefits of large-scale production, which is more economical. So, they need warehouse to keep the finished goods properly until the goods are cleared by sales. 5. Stable the Price

If there is too much supply for a product, the price will fall. If there is insufficient of product for the demand, the market price will increase. To maintain a balance of supply of products, warehouse is required to stable the market price of a product. 6. Storage of Goods

Store large quantity stock of goods is the basic function of a warehouse. The goods or products are store from the time...
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