Theory question 103
Warehousing(a) State four functions of warehousing.
(b) State two features of each of the following retail outlets: (i) chain store (ii) mobile shop; (iii) mail order business.
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(a) Any four: safe storage of goods until needed; protects goods from damage, theft and weather; ensures a steady supply all year (seasonal goods); helps stabilise prices; allows packing, blending, grading and branding; bonded warehouses keep imported goods until duty is paid; goods in store can be used as security for loans; creates time utility.
(b)(i) Chain store (any two): many branches in different towns; same type of goods and similar shop fronts; central buying and control from head office; uniform prices.
(ii) Mobile shop (any two): sells from a van/vehicle; moves from place to place to meet customers; serves rural and new areas; carries a limited range of goods; attracts customers with music or horns.
(iii) Mail order (any two): advertises with catalogues, newspapers or online; orders received by post/phone/internet; goods delivered by post or courier; payment by cash with order or cash on delivery; no physical shop needed.
Two features for each of the three outlets.