Observation

Most candidates attempted this question and their performance was very impressive. However some candidates wrote the importance of warehouse for the features of warehouse in 5a. For example, protection of goods against theft and fire, it ensures regular flow of goods to the market.

The expected responses are.

            5a.       Features of a Warehouse

             (i)         Convenient location - It should be located as conveniently as possible to potential
users e.g. near seaports, highways, central markets - good road network.
(ii)        There should be adequate mechanical appliances and facilities for loading, unloading
and refrigeration
(iii)       Spacious accommodation to facilitate easy movement of goods, equipment and
people.
(iv)       Adequate parking space inside the premises for free movement of vehicles, container
trucks etc.
(v)        Effective security arrangement should be provided to prevent theft and burglary, fire
and protection of goods from rain, sunlight, wind, pests etc.
(vi) Availability of office space for administrative staff.

           
            5b.       Importance of Warehousing to a business

1. Protection of goods against theft and fire.
2. It ensures regular flow of goods to the marketing thus helping in stabilizing prices.
3. It facilitates continuity in production as it permits precautionary holding of inventory to

respond to market conditions.

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1. It reduces risk of loss as warehouses guarantee the good condition of goods in their care.
2. It promotes sales by allowing prospective buyers to inspect goods while in the

warehouse.

1. Some goods are blended, graded and labeled while in the warehouses.
2. It is revenue generating means for government and individuals who own private

warehouses.

1. It enables the owner of goods in bonded warehouse to pat the duty gradually as they sell the goods.