Theory question 101
WarehousingMr. Abu, an entrepreneur, wants to establish a public warehousing business. (a) State five factors to be considered by Mr. Abu in locating the business. (b) Describe five activities to be carried out by Mr. Abu in the business.
Show the model answer
(a) Any five: nearness to producers/markets (customers who need storage); good road, rail or water access; cost of land/rent; security of the area; availability of power and water; government zoning rules; availability of labour; nearness to ports for imported goods; space for expansion and parking.
(b) Any five, described: receiving and checking goods; storing goods safely; keeping records of goods in and out (inventory); protecting goods from theft, fire, pests and damp; sorting, grading and packing; releasing goods to owners when needed; issuing warehouse warrants/receipts; arranging insurance; cleaning and maintaining the facility.
Give each point as a full sentence, with an example where possible.