The requirement of an ideal warehouse.
The establishment which facilitate storage of goods is known as warehouse and the services rendered in connection with storage of goods is known as warehousing. An ideal warehouse is one which has the following characteristics:
I. It should be located at a convenient location so that distributing agencies and consumer can get the advantages of warehouse easily. Location at a convenient place also reduces the cost of transportation.
II. The warehouse should safety and security measures. It should be built in such a manner that it must provide protection against fire, insects, pilferage and thefts.
III. The warehouse should be suitable to store the products of the firm. It must ensure sufficient space for the storage of goods.
IV. Warehouse should ensure economy in storing. The operational cost of warehouse should be minimum otherwise it will increases the cost of production.