Warehousing

Warehouse is a storage structure constructed for the protection of the quality and quantity of the stored produce. The need for a warehouse arises due to the time gap between production and consumption of products. Warehousing or storage refers to the holding and preservation of goods until they are despatched to the consumers.

By bridging this gap, storage creates time utility. There is a need for storing the goods so as to make them available to buyers as and when required. Storage enables a firm to carry on production in anticipation of demand in future. Warehouses enables the businessmen to carry on production throughout the year and sell their products, whenever there is adequate demand.

Need for warehouses arises also because some goods are produced only in a particular season but are demanded throughout the year. Similarly, certain products are produced throughout the year but demanded only during a particular season.

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