a. State four functions of warehousing b (l). Identify three modes of transportation (ii) Explain three transportation documents

Answer Details

(a) Four functions of warehousing

1. Storage of goods: It provides safe space to keep goods from the time of production until they are needed for sale or use, creating time utility.
2. Protection/preservation of goods: It guards goods against damage, theft, pests and bad weather, keeping their quality intact.
3. Regularizing/stabilizing supply and prices: By holding stock, it ensures steady supply throughout the year and helps prevent sharp price changes caused by scarcity or glut.
4. Preparation of goods for sale (grading, packaging, etc.): Goods can be sorted, graded, blended, packed and labelled in the warehouse before distribution.
5. Facilitates bulk buying and breaking bulk: It allows goods to be received in large quantities and later broken into smaller lots for buyers.

(b)(i) Three modes of transportation

1. Road transport
2. Rail transport
3. Water (sea/inland waterway) transport
4. Air transport

(b)(ii) Three transportation documents explained

1. Bill of lading: A document issued by a shipping company acknowledging that goods have been received for carriage by sea. It serves as a receipt for the goods, evidence of the contract of carriage, and a document of title to the goods.
2. Consignment note (waybill): A document that accompanies goods sent by road or rail. It shows the sender, the receiver, description of the goods and the terms of carriage, serving as a receipt and record of the consignment.
3. Airway bill: A document issued by an airline for goods carried by air. It acts as a receipt for the goods and evidence of the contract of air carriage (but, unlike a bill of lading, it is not a document of title).