Question 3
- State four functions of warehousing.
- State two features of each of the following retail outlets:
(i) chain store;
(ii) mobile shop;
(iii) mail order business.
Observation
Most candidates who attempted this question did well.
The expected responses are.
(a) Functions of warehousing
- Provision of security for goods.
- Provision of storage facilities to prevent damage or deterioration.
- Provision of facilities for blending, packaging, and branding of goods.
- Provision of facilities for storing goods so that production can continue.
- To keep dutiable goods until duty on them is paid.
- Enhancing stability of prices by making products available all year round.
- Provision of pest control services.
- Provision of documentation on goods being stored.
- It makes provision for stock taking at regular intervals.
(b) Features of the following retail outlets
- Chain store
- These are stores with many branches.
- They sell the same line of products.
- They have one management.
- Goods bought in one branch could be returned to another branch.
- They operate similar shop fronts.
- Staff could be transferred from one branch to another with ease.
- Mobile shop
- The seller and the goods are mobile.
- They sell variety of products.
- The seller can reach many areas that are motorable.
- They provide convenience for buyers as it makes varieties available in rural settings.
- They attract customers by playing music, blowing horns and using public address systems.
- Mail order business
- They rely on the post office and courier service for orders and delivery of goods.
- Goods are either sold on cash on delivery or cash with order.
- Orders are placed by customers according to the terms of sale by filling forms.
- Catalogues are used to show detail description of the goods, sizes and prices.