Question 6
- State four functions of warehousing.
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- list three modes of transportation
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Explain the following transportation documents:
- waybill;
- consignment note;
- delivery note.
Observation
Most candidates who attempted this question performed very well. However, some candidates could not explain consignment note.
The expected responses are.
- a. Functions of Warehousing
- Warehousing performs the function of storage of goods until they are needed.
- Warehousing facilitates price stabilization by the creation of time utility.
- Warehousing helps in risk- minimization such as theft and fire.
- Warehousing provides facilities for grading, sorting and packaging of goods.
- Warehousing provides protection to goods from loss or damage due to heat, dust, moisture, wind etc.
- Warehousing helps to keep track of information regarding inflows and outflows of stock.
b. (i) Modes of Transportation
- Road transportation
- Rail transportation
- Water transportation
- Air transportation
- Pipeline transportation
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(ii) Transportation Documents
- Waybill: This is a document used by a carrier showing details and instructions regarding the goods being transported. It shows the names of the consignor and the consignee, the point of origin, the destination of the goods.
- Consignment Note: This is a document prepared by a consignor and countersigned by the carrier as a proof of receipt of goods for delivery at a destination.
- Delivery Note: This is a document that accompanies the shipment of goods and shows the description and quantity of goods declared. A copy of this document, signed by the consignee is returned to the consignor as proof of delivery.