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Why does inventory need to be stored in a warehouse? What different types of warehouses are there? How do customers influnce warehouse locations? What are the advantages and disadvantages of the different warehouse types? What are the advantages and disadvantages of warehouse locations?

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Why does inventory need to be stored in a warehouse?

It is important that businesses conduct a physical inventory occasionally or regularly, e.g., monthly, quarterly, or annually. Everything in the warehouse should be checked and compared to the inventory database to ensure accuracy of records and that everything in the inventory is accounted for. During the checking of inventory, items that are susceptible to breakage, pilferage, or being put in the wrong place are being identified and measures can be taken to minimize wastage and similar problems in the future are avoided. Customers deserve to get the best items hence, there is a need to put the products in a safe place and be handled efficiently so that the cash flow will improve.

What different types of warehouses are there?

1. Public Warehouse provides space to be leased for short-term distribution needs.
2. Private Warehouses are owned and operated by channel suppliers and also of the resellers for the purpose of utilizing for their own distribution activity.
3. Climate-Controlled Warehouses are good for storing various types of products including those that require special handling conditions, e.g., freezers for frozen products, flowers, and humidity-controlled environments for delicate products.
4. Automated Warehouses have automated capabilities brought about with the advances in computer and robotics technology, e.g, platforms that can hold large amounts of products)
5. Distribution Centers serve as points for distribution where products are received from suppliers and immediately shipped out to the customers.

How do customers influence warehouse locations?

Organizations always want to serve the customers to the best of their ability. Offering the customers outstanding products and services at affordable and fixed cost is one of the things that attract the consumers. By having a warehouse that is nearer to the prospective consumers/customers, the company can save on costs of ...

Solution Summary

The solution explains the reasons why inventory needs to be stored in a warehouse. It also lists the different types of warehouses and the advantages and disadvantages of warehouse locations. References are included.