Mr. Abu, an entrepreneur, wants to public warehousing business a) State five factors to be considered by Mr.Abu in locating the business. b) Describe five a...

Answer Details

(a) Five factors to be considered by Mr. Abu in locating the warehousing business

1. Nearness to the market and customers: The warehouse should be close to the traders and firms that will use it so goods can be delivered quickly and cheaply.
2. Nearness to source of supply/producers: Siting the warehouse near where goods are produced reduces the cost and time of bringing stock in.
3. Good transport and access roads: The site must be well connected by good roads (and ideally rail or water) so that lorries can bring in and take out goods easily.
4. Availability and cost of land/rent: The land or building must be large enough and its cost or rent affordable relative to expected income.
5. Security and safety of the area: The location should be safe from theft, flooding and fire, with good drainage and firefighting facilities to protect stored goods.

Other acceptable factors: availability of infrastructure (electricity, water) and labour, and government/zoning regulations.

(b) Five activities to be carried out by Mr. Abu in the warehousing business

1. Receiving goods: Taking in, checking and recording goods brought by owners for storage.
2. Storing goods safely: Arranging and keeping the goods in good condition until they are needed, creating time utility.
3. Sorting and grading: Separating goods according to type, size and quality for easy handling and issue.
4. Preserving and protecting goods: Guarding the goods against damage, theft, pests, fire and deterioration, including insuring them.
5. Issuing/releasing goods and keeping records: Handing out goods to owners on demand and maintaining accurate records of stock received and released.

Other acceptable activities: providing refrigeration/special storage for perishables and offering documents such as warehouse warrants.