Role of Warehouses

Functions of Warehouse:

• To provide storage for raw materials and components of the manufacturing process
• To protect goods from theft , deterioration and damage and weathering.
• To help in stockpiling. Production can be done ahead of demand.
• To provide packaging, grading, sorting and labelling before sale of goods.
• To keep prices stable
• To provide product collection and distribution.
• To offer special facilities
• To break bulk quantities into smaller quantities.
• To inspect goods before prospective buyers purchase them.
• To meet unexpected demand

Importance:

• Just in time supply and delivery of goods
• Storage of surplus goods which can be sold later for profit
• Prevent business from running out of supply thus helping to maintain stable rate of inventory turnover.
• Reduces transport and distribution costs

Seasonal production:

• Seasonal production means to produce goods at certain times of the year for which there is a stable demand throughout the year.Warehouses store these goods and release them throughout the year to retailers to maintain supplies and stable prices.
• Seasonal demand means to produce goods throughout the year for which there is demand at only certain times of the year.Warehouses store these goods and release them when demanded to maintain price stability.