Classwork Series and Exercises {Commerce – SS2}: Ware Housing

SS 2 Commerce First term Week 1

Topic: Warehousing

Content –

Meaning of Warehousing

Importance of Warehousing

Types of Warehousing

Warehousing

Warehousing is the means of storing manufactured goods or goods that are  bought in a particular place until they are needed. However ,warehouse is a place where goods are stored until they are demanded by the consumers.

Importance of Warehousing

1. It provides employment opportunities such as clerks,managers,store keeper etc
2. It ensures constant supply of goods by the producer or retailer
3. It ensures production of goods ahead of demand
4. It provides security for goods
5. It facilitates repackaging and branding of goods.
6. It ensures constant supply of goods
7. It helps to eliminate seasonal problem
8. It brings about stability of price
9. Warehouse makes a producer or wholesaler reliable.
10. It attracts customers.

Types of Warehouse

1. Bonded warehouse: Bonded warehouse is usually located at the port, for storing goods whose duties have not been paid.
2. Manufacturer warehouse: This is warehouse owned by the producer of goods to store their goods until they are demanded.
3. State warehouse:It is a warehouse where smuggled goods are kept until they are been sold.It is owned and controlled by the Government of a country.
4. Public warehouse: Public warehouse is usually owned by private individual who let it out to anybody for safekeeping of their goods. The person who hires a public warehouse pay rents to the owner.
5. Wholesale warehouse:wholesale warehouse are located near distribution or sales centers.It is owned by the wholesaler to store all the goods bought.

Test and Assessment  

1. A place where goods are stored before they are needed is called (a)Bed room (b)office (c)rest room (d)warehouse.ans(d)
2. A warehouse for storing goods whose duties have not been paid is called (a)wholesale warehouse (b)public warehouse (c)bonded warehouse (d)state warehouse.ans(c)
3. All of these are types of warehouse except (a)Boss warehouse (b)public warehouse (c)state warehouse (d)bonded warehouse.ans(a)
4. A person who hires public warehouse must pay what is called (a)premium (b)interest (c)rent (d)dividend.ans (c)
5. All of these are importance of warehousing except (a)storage facilities (b)stability of price (c)employment opportunities (d)increase exchange rate.ans(d)