Observation

   Most of the candidate that attempted this question performed excellently well.                                                                                  
The responses expected from candidates are:
 
5 (a)                 Reasons for the establishment of a warehouse:
i.          There is need for proper storage of seasonal materials that are used throughout the year to ensure continuous production.
ii.         There is need to store seasonal products that are demanded throughout the year and make them available at the time of need.
iii.        Manufacturers produce goods in large quantities to enjoy the benefits of large scale. Goods produced on large scale are kept properly in the warehouse until there is need for them.
iv.        Goods kept in the warehouse are supplied to the market without any delay to customers.
v.         Warehousing stabilizes prices of goods in the market in times of scarcity and glut by controlling the supply of goods to the market.
vi.        Goods kept in the warehouse are properly protected against damages, theft or loss.
vii.       Goods are well graded and preserved in the warehouse.
viii.      Warehousing helps facilitates packaging and handling of products before they are sold in the market.
ix.        Warehousing facilitates financing for the business by using goods in the warehouse to obtain credit.
x.         A warehouse can be a source of revenue for the company if they are rented out for other uses.
xi.        A warehouse serves as an avenue for job opportunities.

  (b)      Activities that would take place in the warehouse are as follows:
i.          Inspection of materials delivered by the supplier.
ii.         Receiving of materials into the warehouse.
iii.        Classification and codification of materials for easy identification and location;
iv.        Recording of material movements in the warehouse.
v.         Storage and maintenance of materials in the store.
vi.        Movement of materials from one location to another within the warehouse.
vii.       Pre-Packaging and labelling of products.
viii.      Issuing of materials against approved requests.
ix.        Reporting obsolete, redundant and slow moving items to management in good time.
x.         Stock taking and stock checking.
xi.        Setting of stock levels for control purposes.
xii.       Counting and grading of products.
xiii.      Weighing of items in the warehouse.
xiv.      Sales of goods can be carried out in the warehouse.