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Need for Warehousing
Production is based on the anticipated demand for goods. Mass production of goods takes place by establishing big factories and modern production. The market for such goods is spread all over the country. Therefore, warehouses are to be built at different places to store these products and provide prompt supplies when demanded.
Some goods are perishable in nature and therefore it should be consumed in time to avoid deterioration. Storing them in cold storages can extend the life of the goods.
The farm products such as wheat, sugar, pulses, etc. are produced only in seasons. But the consumption of these products are evenly spread throughout the year. If proper storage facilities are not provided, the quality of these goods deteriorates and may become not usable.
Certain goods are produced regularly throughout the year. Bu they are demanded in seasons only. For example, rain-coats, blankets, umbrella, etc. require storage for whole year. They can be released in large quantities to meet the heavy demand in rainy and winter seasons.
Productions of goods at specific centers need to be supplied in time and without interruption to consumers throughout the country. For this purpose goods are regularly fed to the warehouses situated at different market areas.
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