Explain any four functions of a warehouse.

Answer: Storage, price stabilisation, risk bearing, financing, grading and packing, and transportation are functions of a warehouse.

1. Storage: The basic function is to store large quantities of goods safely from the time of production till they are sold or consumed. This creates time utility.
2. Price stabilisation: By storing goods when supply is high and releasing them when supply is low, warehouses reduce fluctuations in prices.
3. Risk bearing: Goods stored are protected against theft, fire, rain, pests and deterioration; the warehouse keeper is responsible for their safety.
4. Financing: The owner can obtain loans from banks by pledging the warehouse receipt / warrant as security.
5. Grading and packing: Warehouses provide facilities for grading, sorting, packing and labelling of goods.
6. Transportation: Some warehouses arrange transport of goods from the producer’s place to the warehouse and from the warehouse to buyers.