CHAPTERFOUR

War
eho
useManagement(
WHM)
.
Chapt
ero
bjec
tiv
es
Aft
ers
tudyi
ngt
hisl
ess
on,
youwi
llabl
eto
:

oExplaint heme aningo fwar e

ho u s
ing;
oRecognizet hene edfo rwareho using;
oi
de ntifydifferentt ypeso fwar eho us
e s
;
oExplainthec h
ar acteristi
csofi dealwar eho
use
s;
oDescribet hefu nctionsofwar e houses;and
oEnlisttheadvant ageso fwar eho uses.
1.I
ntr
oduc
tio
n

Wee
atav
ari
etyo
ffo
odi
nou
rdai
lyl
ife
.So
meo
fusmayt
aker
ice
,whi
le
 ot
her
sma
yli
ke
c
hap
att
iorr
otiaso
urmai
nfo
od.
Buthav
eyo
uev
ert
hou
ght
 fr
omwhe
ret
hep
addyo
rwhe
at
fr
omwhi
cht
hes
efo
odi
temsar
epr
epar
ed 
comefr
om.Wek
nowt
hatt
hes
efo
odgr
ainsar
e
no
tpr
odu
cedt
hro
ugho
utt
heye
  ar
.Bu
twene
edt
oeatt
heme
ver
yday.Soho
war
ethe
far
mer
sabl
etos
upp
ly 
the
sei
temsc
ont
inu
ous
lyt
ous
?Yo
umi
ghtbet
hink
ingt
hatt
hey
s
tor
ethefo
od 
grai
nsatap
rop
erp
lac
eands
upp
lyt
hematt
het
imeo
fne
ed.Ye
s,yo
uar
e
r
ight
.

Si
ncet
hep
rodu
cti
ont
ake
spl
acedu
ringap
art
icu
lars
eas
onandi
nsp
eci
fic
 ar
eas
,sot
her
eis
ane
edt
ost
oret
hes
egr
ainss
yst
emat
ical
ly.I
nou
rho
mewe
 al
sok
eepl
imi
teds
toc
kfo
rou
r
o
wnc
ons
ump
tio
n.Bu
tthe
rear
ece
rtai
npl
ace
s o
rst
ore
s,whe
ret
hes
eit
emsar
est
ore
din
hu
gequ
ant
iti
esi
nap
rop
erand 
sys
temat
icway.I
nthi
sle
sso
nle
tusl
ear
nthede
tai
lsa
bou
t
t
hes
est
ore
s.

4.
1Defi
nit
iono
fwar
eho
use
Wene
eddi
ffe
rentt
ype
sofgo
odsi
nou
rday-t
o-dayl
ife
.Wemaybu
yso
meo
fthe
sei
tems
i
nbu
lkands
tor
ethe
mino
urho
use
.Si
mil
arl
y,manu
fac
tur
ersne
ed 
rawmat
eri
alst
hro
ugho
ut
t
heye
arwi
tho
utanybr
eak
.So
meo
fthe
m mayno
t beav
ail
abl
eal
lthet
ime
.Tak
ethe
e
xamp
leo
fas
ugarmi
ll
.Itne
edss
ugar
cane
 sr
awmat
eri
alfo
rpr
odu
cti
ono
fsu
gar
.Yo
u
k
nowt
hats
ugar
canei
spr
odu
ced 
dur
ingap
art
icu
lars
eas
ono
ftheye
ar.

Si
nces
ugarp
rodu
cti
ont
ake
spl
ace
 thr
ougho
utt
heye
ar,
the
rei
sane
edt
osu
ppl
ysu
gar
cane
c
ont
inu
ous
ly.Bu
tho
wisi
tpo
ssi
ble
?He
res
tor
ageo
fsu
gar
canei
nsu
ffi
ci
entqu
ant
ityi
s
r
equ
ire
d. 
Agai
n,aft
erp
rodu
cti
ono
fsu
gar
 i
tne
edss
omet
imefo
rsal
eor
 di
str
ibu
tio
n.Thu
s,
t
hene
edfo
r s
tor
agear
ise
sbo
thfo
rraw 
mat
eri
alaswe
llasfi
nis
hedp
rodu
cts
.

St
orage i
nvo
lve
spr
ope
rar
range
mentfo
rpr
ese
rvi
ng go
odsfr
om t
he t
ime o
fthe
ir

p
rodu
cti
ono
rpu
rchas
eti
llt
heac
tualu
seo
rsal
e.Whe
nthi
sst
oragei
sdo
neo
nal
arges
cal
e

andi
nas
pec
ifi
edmanne
riti
scal
le
d‘war
eho
usi
ng’
.Thep
lac
ewhe
rego
odsar
eke
pti
scal
le
d

‘
war
eho
use
’.Thep
ers
oni
n-c
har
geo
fwar
eho
usei
scal
le
d‘war
eho
use
-ke
epe
r’

War
eho
usi
ng’r
efe
rst
otheac
tiv
iti
esi
nvo
lvi
ngs
tor
ageo
fgo
odso
nal
arge
- s
cal
einas
yst
emat
ic

ando
rde
rlymanne
randmak
ingt
hemav
ail
abl
e 
conv
eni
ent
lywhe
nne
ede
d.

I
not
herwo
rds
,war
eho
usi
ngme
ansho
ldi
ngo
r p
res
erv
inggo
odsi
nhu
gequ
ant
iti
esfr
omt
het
imeo
f

t
hei
rpu
rchas
eorp
rodu
cti
ont
il
lthe
irac
tualu
seo
rsal
e.
 War
eho
usi
ngi
soneo
fthei
mpo
rtant

aux
il
iar
iest
otr .I
ade tc
reat
est
imeut
il
it
y bybr
idgi
ngt
het
imegapbet
weenpr
oduc
tio
nand

c
ons
umpt
iono
fgo
ods
.

Awar
eho
usemaybede
fine
dasap
lac
eus
edfo
rthes
tor
ageo
rac
cumu
lat
iono
fgo
ods
.The

fu
nct
iono
fst
oragec
anbec
arr
iedo
uts
ucc
ess
fulwi
tht
hehe
lpo
fwar
eho
use
sus
edfo
r

s
tor
ingt
hego
ods
. 
War
eho
usi
ngc
anal
sobede
fine
dasas
sump
tio
nofr
esp
ons
ibi
li
tyfo
rthes
tor
age

o
fgo
ods
.Bys
tor
ingt
hego
odst
hro
ugho
utt
heye
arandr
ele
asi
ngt
hemasandwhe
nthe
yar
ene
ede
d,

war
eho
usi
ngc
reat
est
imeu
til
it
y.

4.
2.NEEDFORWAREHOUSI
NG
War
eho
usi
ngi
snec
ess
arybec
aus
eoft
hefo
ll
owi
ngr
eas
ons
.

(
i)Seas
onalPr
oduc
tio
n-Yo
ukno
wthatagr
icu
ltu
ralc
ommo
dit
iesar
e

har
ves
teddu
ringc
ert
ains
eas
ons
,bu
tthe
irc
ons
ump
tio
noru
set
ake
s

p
lac
ethr
ougho
utt
heye
ar.
The
refo
re,
the
rei
sane
edfo
rpr
ope
rst
orage

o
rwar
eho
usi
ngfo
rthe
sec
ommo
dit
ies
,fr
omwhe
ret
heyc
anbes
upp
li
ed

asandwhe
nre
qui
red.

(
ii
)Seas
onalDemand-The
rear
ece
rtai
ngo
odswhi
char
ede
mande
d

s
eas
onal
ly,
li
kewo
ole
ngar
ment
sinwi
nte
rso
rumbr
ell
asi
nther
ainy

s
eas
on.
Howe
ver
,thep
rodu
cti
ono
fthe
sego
odst
ake
spl
acet
hro
ugho
ut

t
heye
art
ome
ett
hes
eas
onalde
mand.
Sot
her
eisane
edt
ost
oret
hes
e

go
odsi
nawar
eho
uset
omak
ethe
mav
ail
abl
eatt
het
imeo
fne
ed.

(
ii
i)Lar
ge-s
cal
ePr
oduc
tio
n-I
nca
seo
fmanu
fac
tur
edgo
ods
,no
w-a-days

p
rodu
cti
ont
ake
spl
acet
ome
ett
hee
xis
tingaswe
llasfu
tur
ede
mando
f

t
hep
rodu
cts
.Manu
fac
tur
ersal
sop
rodu
cego
odsi
nhu
gequ
ant
ityt
o

e
njo
ythebe
nefi
tso
flar
ge-s
cal
epr
odu
cti
on,
whi
chi
smo
ree
cono
mic
al.

Sot
hefi
nis
hedp
rodu
cts
,whi
char
epr
odu
cedo
nal
arges
cal
e,ne
edt
o

bes
tor
edp
rop
erl
yti
llt
heyar
ecl
ear
edbys
ale
s.

i
v.Qui
ckSuppl
y-Bo
thi
ndu
str
ialaswe
llasagr
icu
ltu
ralgo
odsar
e

p
rodu
cedats
omes
pec
ifi
cpl
ace
sbu
tar
eco
nsu
medt
hro
ugho
utt
he

c
ount
ry.
The
refo
re,
iti
ses
sent
ialt
ost
ockt
hes
ego
odsne
art
hep
lac
eof

c
ons
ump
tio
nsot
hatwi
tho
utmak
inga
nyde
layt
hes
ego
odsar
emade

av
ail
abl
etot
hec
ons
ume
rsatt
het
imeo
fthe
irne
ed.
(
v)Co
nti
nuo
usPr
oduc
tio
n-Co
nti
nuo
usp
rodu
cti
ono
fgo
odsi
nfac
tor
ies

r
equ
ire
sade
quat
esu
ppl
yofr
awmat
eri
als
.

Sot
her
eisane
edt
oke
eps
uffi
ci
entqu
ant
ityo
fst
ocko
frawmat
eri
ali
nthewar
eho
use
sto

e
nsu
re

c
ont
inu
ousp
rodu
cti
on.

(
vi)Pr
iceSt
abi
li
zat
ion-Tomai
ntai
nar
eas
onabl
ele
velo
fthep
ric
eoft
he

go
odsi
nthemar
kett
her
eisane
edt
oke
eps
uffi
ci
ents
toc
kint
he

war
eho
use
s.Sc
arc
ityi
nsu
ppl
yofgo
odsmayi
ncr
eas
ethe
irp
ric
eint
he

mar
ket
.Agai
n,e
xce
ssp
rodu
cti
onands
upp
lymayal
sol
eadt
ofal
lin

p
ric
eso
fthep
rodu
ct.

4
.3Func
tio
nOfwar
eho
use

1.
Sto
rage:

Thi
sist
hebas
icfu
nct
iono
fwar
eho
usi
ng.Su
rpl
usc
ommo
dit
ieswhi
char
eno
tne
ede
d
i
mme
diat
elyc
anbes
tor
edi
nwar
eho
use
s.The
ycanbes
upp
li
edasandwhe
nne
ede
dbyt
he
c
ust
ome
rs.

2.
Pri
ceSt
abi
li
zat
ion:

 Tomai
ntai
nar
eas
onabl
ele
velo
fthep
ric
eoft
he
go
odsi
nthemar
kett
her
eisane
edt
oke
eps
uffi
ci
ents
toc
kint
he
war
eho
use
s.Sc
arc
ityi
nsu
ppl
yofgo
odsmayi
ncr
eas
ethe
irp
ric
eint
he
mar
ket
.Agai
n,e
xce
ssp
rodu
cti
onands
upp
lymayal
sol
eadt
ofal
lin
p
ric
eso
fthep
rodu
ct.
Bymai
ntai
ningabal
anc
eofs
upp
lyo
fgo
ods
war
eho
usi
ngl
eadst
opr
ices
tabi
li
zat
ion.
 Fal
lint
hepr
iceso
fgo
odswhent
hei
rsuppl
yisi
nabundanc
eandr
isei
nthei
rpr
ices
 dur
ingt
hes
lac
kseas
onar
eav
oided.

3.
Ris
kbear
ing:
Whe
nthego
odsar
est
ore
dinwar
eho
use
sthe
yar
eex
pos
edt
omanyr
isk
sint
hefo
rmo
f
t
heft
,de
ter
ior
ati
on,e
xpl
orat
ion,fi
ree
tc.War
eho
use
sar
eco
nst
ruc
tedi
nsu
chawayast
o
mi
nimi
zet
hes
eri
sks
.Co
ntr
acto
fbai
lme
nto
per
ate
swhe
nthego
odsar
est
ore
dinwav
e-
ho
use
s.

Awar
eho
usek
eep
erhast
otak
eth
ere
aso
nabl
ecar
eoft
hego
odsands
afe
guar
dthe
m
agai
nstv
ari
ousr
isk
s.Fo
ranyl
osso
rdamages
ust
aine
dbygo
ods
,war
eho
usek
eep
ers
hal
lbe
l
iabl
etot
heo
wne
roft
hego
ods
.

4.
Financ
ing:
Lo
ansc
anber
ais
edfr
omt
hewar
eho
usek
eep
eragai
nstt
hego
odss
tor
edbyt
heo
wne
r.
Go
odsac
tass
ecu
rit
yfo
rthewar
eho
usek
eep
er.Si
mil
arl
y,bank
sando
the
rfi
nanc
ial
i
nst
itu
tio
nsal
soadv
anc
elo
ansagai
nstwar
eho
user
ece
ipt
s.I
nthi
smanne
r,war
eho
usi
ngac
ts
asas
our
ceo
ffi
nanc
efo
rthebu
sin
ess
menfo
rme
eti
ngbu
sine
sso
per
ati
ons
.

5.
Gradi
ngandPac
king:
War
eho
use
sno
wadaysp
rov
idet
hefac
il
it
ieso
fpac
king,p
roc
ess
ingandgr
adi
ngo
fgo
ods
.
Go
odsc
anbep
ack
edi
nco
nve
nie
nts
ize
sasp
ert
hei
nst
ruc
tio
nso
ftheo
wne
r.

4.
4Impo
rtanc
eofWar
eho
usi
ngI
ntheDev
elo
pmento
fTr
adeandCo
mmer
ce:

War
eho
usi
ngo
rst
orager
efe
rst
otheho
ldi
ngandp
res
erv
ati
ono
fgo
odsu
nti
lthe
yar
e
di
spat
che
dtot
hec
ons
ume
rs.
Gene
ral
ly,
the
rei
sat
imegapbe
twe
ent
hep
rodu
cti
onan
d
c
ons
ump
tio
nofp
rodu
cts
.Bybr
idgi
ngt
hisgap
,st
oragec
reat
est
imeu
til
it
y.

The
rei
sne
edfo
rst
ori
ngt
hego
odss
oast
omak
ethe
m av
ail
abl
etobu
yer
sasandwhe
n
r
equ
ire
d.So
meamo
unto
fgo
odsi
sst
ore
date
ver
yst
agei
nthemar
ket
ingp
roc
ess
.Pr
ope
r
andade
quat
ear
range
ment
stor
etai
lthego
odsi
npe
rfe
ctc
ondi
ti
onar
ees
sent
ialfo
r
s
ucc
essi
nmar
ket
ing.St
oragee
nabl
esafi
rmt
ocar
ryo
npr
odu
cti
oni
nant
ici
pat
iono
f
de
mandi
nfu
tur
e.
Awar
eho
usei
sap
lac
eus
edfo
rthes
tor
ageo
rac
cumu
lat
iono
fgo
ods
.Itmaya
lsobe
de
fine
dasane
stabl
is
hme
ntt
hatas
sume
sre
spo
nsi
bil
it
yfo
rthes
afec
ust
odyo
fgo
ods
.
War
eho
use
senabl
ethebu
sine
ssme
ntoc
arr
yonp
rodu
cti
ont
hro
ugho
utt
heye
arandt
ose
ll
t
hei
rpr
odu
cts
,whe
nev
ert
her
eisade
quat
ede
mand.

Ne
edfo
rwar
eho
usear
ise
sal
sobe
cau
ses
omego
odsar
epr
odu
cedo
nlyi
nap
art
icu
lars
eas
on
bu
tar
ede
mande
dthr
ougho
utt
heye
ar.
Simi
lar
lyc
ert
ainp
rodu
ctsar
epr
odu
cedt
hro
ugho
ut
t
heye
arbu
tde
mande
donl
ydu
ringap
art
icu
lars
eas
on.War
eho
usi
ngfac
il
it
ate
spr
odu
cti
on
anddi
str
ibu
tio
nonal
arges
cal
e.

Benefi
tso
fWar
eho
usi
ng

1.
Regul
arpr
oduc
tio
n:
 Raw mat
eri
alsne
edt
obes
tor
edt
oenabl
emas
spr
odu
cti
ont
obec
arr
iedo
n
c
ont
inu
ous
ly.So
met
ime
s,go
odsar
est
ore
din ant
ici
pat
iono
far
isei
npr
ice
s.
War
eho
use
senabl
emanu
fac
tur
erst
opr
odu
cego
odsi
nant
ici
pat
iono
fde
mandi
n
fu
tur
e.

2.
Timeut
il
it
y:
 Awar
eho
usec
reat
est
imeu
til
it
ybybr
ingi
ngt
het
imegapbe
twe
ent
hep
rodu
cti
on
andc
ons
ump
tio
nofgo
ods
.Ithe
lpsi
nmak
ingav
ail
abl
ethego
odswhe
nev
err
equ
ire
d
o
rde
mande
dbyt
hec
ust
ome
rs.So
mego
odsar
epr
odu
cedt
hro
ugho
utt
heye
arbu
t
de
mande
donl
ydu
ringp
art
icu
lars
eas
ons
,e.
g.,wo
ol,r
ainc
oat
,umbr
ell
a,he
ate
r,e
tc.
o
ntheo
the
rhand,s
omep
rodu
ctsar
ede
mande
dthr
ougho
utt
heye
arbu
tth
eyar
e
p
rodu
cedi
nce
rtai
nre
gio
n,e
.g.
,whe
at,r
ice
,po
tat
oes
,et
c.Go
odsl
ik
eri
ce,t
obac
co,
l
iqu
orandj
igge
rybe
comemo
rev
alu
abl
ewi
tht
hep
ass
ageo
fti
me.

3.
Sto
reo
fsur
plusgo
ods
:
 Bas
ical
ly,awar
eho
useac
tsasas
tor
eofs
urp
lusgo
odswhi
char
eno
tne
ede
d
i
mme
diat
ely.Go
odsar
eoft
enp
rodu
cedi
nant
ici
pat
iono
fde
mandandne
edt
obe
p
res
erv
edp
rop
erl
yunt
ilt
heyar
ede
mande
dbyt
hec
ust
ome
rs.Go
odswhi
cha
reno
t
r
equ
ire
dimme
diat
elyc
anbes
tor
edi
nawar
eho
uset
ome
ett
hede
mandi
nfu
tur
e.
4.
Pri
ces
tabi
li
zat
ion:
 War
eho
use
sre
duc
evi
ol
entfl
uct
uat
ionsi
npr
ice
sbys
tor
inggo
odswhe
nthe
irs
upp
ly
e
xce
edsde
mandandbyr
ele
asi
ngt
hem whe
nthede
mandi
smo
ret
hani
mme
diat
e
p
rodu
cti
ons
.War
eho
use
sens
urear
egu
lars
upp
lyo
f go
odsi
nthemar
ket
.Thi
s
ma
tchi
ngo
fsu
ppl
ywi
thde
mandhe
lpst
ost
abi
li
zep
ric
es.
5.
Mini
miz
ati
ono
fri
sk:
 War
eho
use
spr
ovi
defo
rthes
afec
ust
odyo
fgo
ods
.Pe
ris
habl
epr
odu
ctsc
anbe
p
res
erv
edi
nco
lds
tor
age
.Byk
eep
ingt
hei
rgo
odsi
nwar
eho
use
s,bu
sine
ssme
ncan
mi
nimi
zet
hel
ossfr
omdamage
,fi
re,t
hefte
tc.Thego
odsk
epti
nthewar
eho
usear
e
ge
ner
all
yins
ure
d.I
ncas
eofl
osso
rdamaget
othego
ods
,theo
wne
rofgo
odsc
ange
t
fu
llc
omp
ens
ati
onfr
omt
hei
nsu
ranc
eco
mpany.
6.
Pac
kingandgr
adi
ng:

 Ce
rtai
npr
odu
ctshav
etobec
ondi
ti
one
dorp
roc
ess
edt
omak
ethe
m fi
tfo
rhu
man
u
se,
e.g.
,co
ffe
e,t
obac
co,
etc
.Amo
der
nwar
eho
usep
rov
ide
sfac
il
it
iesfo
rpr
oce
ssi
ng,
p
ack
ing,
ble
ndi
ng,
gradi
nge
tc.
,oft
hego
odsfo
rthep
urp
oseo
fsal
e.Thep
ros
pec
tiv
e
bu
yer
scani
nsp
ectt
hego
odsk
epti
nawar
eho
use
.

7.
Financ
ing:
 War
eho
use
spr
ovi
dear
ece
iptt
otheo
wne
rofgo
odsfo
rthego
odsk
epti
nthe
war
eho
use
.Theo
wne
rcanbo
rro
wmo
neyagai
nstt
hes
ecu
rit
yofgo
odsbymak
ingan
e
ndo
rse
mento
nthewar
eho
user
ece
ipt
.Ins
omec
ount
rie
s,war
eho
useau
tho
rit
ies
adv
anc
emo
neyagai
nstt
hego
odsde
pos
ite
dint
hewar
eho
use
.Byk
eep
ingt
he
i
mpo
rte
dgo
odsi
nabo
nde
dwar
eho
use
,abu
sine
ssmanc
anp
ayc
ust
omsdu
tyi
n
i
nst
all
ment
s.

4
.5Typ
eofWar
eho
use
s:

Ther
ear
eFi
vet
ypeso
fwar
eho
uses.

 Yo
uhav
ele
arntt
hatwar
eho
usi
ngc
ate
rst
othes
tor
agene
edso
fdi
ffe
rentt
ype
s o
f
c
ommo
dit
ies
.Ino
rde
rtome
ett
hei
rre
qui
reme
ntv
ari
oust
ype
sofwar
eho
use
s c
ame
i
ntoe
xis
tenc
e,whi
chmaybec
las
sifi
edasfo
ll
ows
:
 o Pr
ivat
eWar
eho
use
s o Bo
nde
dWar
eho
use
s
o Pu
bli
cWar
eho
use
s o Co
-op
erat
iveWar
eho
use
s
o Go
ver
nme
ntWar
eho
use
s

1.Pri
vat
eWar
eho
uses-Thewar
eho
use
swhi
char
eowne
dandmanage
d
byt
hemanu
fac
tur
erso
rtr
ade
rst
ost
ore
,ex
clu
siv
ely,t
hei
rowns
toc
k o
fgo
odsar
e
k
nownasp
riv
atewar
eho
use
s.

 Ge
ner
all
ythe
sewar
eho
use
sar
eco
nst
ruc
tedbyt
hefar
mer
sne
art
hei
rfi
el
ds,by
who
les
ale
rsandr
etai
le
rsne
art
hei
rbu
sine
ssc
ent
ersandbymanu
fac
tur
ersne
ar
t
hei
r
fac
tor
ies
. 
Thede
signandt
hefac
il
it
iesp
rov
ide
dthe
rei
nar
eac
cor
ding
t
othenat
ureo
fpr
odu
ctst
obes
tor
ed.
 The p
riv
ate war
eho
use
s ar
eowne
d and o
per
ate
d by bi
g manu
fac
tur
ers and
me
rchant
stofu
lfi
llt
hei
rowns
tor
agene
eds
.

 Thego
odsmanu
fac
tur
edo
rpu
rchas
edbyt
heo
wne
roft
hewar
eho
use
shav
eal
i
mit
ed
v
alu
eoru
til
it
yasbu
sine
ssme
ninge
ner
alc
anno
tmak
eus
eoft
hem be
cau
seo
fthe
he
avyi
nve
stme
ntr
equ
ire
dint
hec
ons
tru
cti
ono
fawar
eho
use
,so
mebi
gbu
sine
ss
fi
rmswhi
chne
edl
arges
tor
agec
apac
ityo
nar
egu
larbas
isandwhoc
anaffo
rdmo
ney,
c
ons
truc
tandmai
ntai
nthei
rpr
ivat
ewar
eho
uses
.Abi
gmanu
fac
tur
ero
rwho
les
ale
r
mayh
aveane
two
rko
fhi
sownwar
eho
use
sindi
ffe
rentp
art
soft
hec
ount
ry.

2.Publ
icWar
eho
uses–

 Thewar
eho
use
swhi
char
eru
ntos
tor
ego
odso
f
t
hege
ner
alp
ubl
ica
rek
nownaspubl
icwar
eho
uses
.Anyo
nec
ans
tor
e
hi
sgo
odsi
nthe
sewar
eho
use
sonp
ayme
ntbas
is.
Ani
ndi
vi
dual
,a
p
art
ner
shi
pfi
rmo
rac
omp
anymayo
wnt
hes
ewar
eho
use
s.
 Tos
tar
tsu
chwar
eho
use
sal
ic
ens
efr
omt
hego
ver
nme
nti
sre
qui
red.
The
go
ver
nme
ntal
sor
egu
lat
est
hefu
nct
ionsando
per
ati
onso
fthe
se
war
eho
use
s.Mo
stl
ythe
sewar
eho
use
sar
eus
edbymanu
fac
tur
ers
,
 who
les
ale
rs,
exp
ort
ers
,imp
ort
ers
,go
ver
nme
ntage
nci
es,
etc
.

3.GovernmentWarehouses–

 Th
ese war
eho
use
sar
eowne
d,manage
d and c
ont
rol
le
d by c
ent
ralo
rst
ate
go
ver
nme
ntso
rpu
bli
cco
rpo
rat
ionso
rlo
calau
tho
rit
ies
.
 Bo
thgo
ver
nme
ntandp
riv
atee
nte
rpr
ise
smayu
se
t
hes
ewar
eho
use
stos
tor
ethe
irgo
ods
.Ce
ntr
alWar
eho
usi
ngCo
rpo
rat
ion
o
fEt
hio
pia,St
ateWar
eho
usi
ngCo
rpo
rat
ionandFo
odCo
rpo
rat
iono
fEt
hio
piaar
e
e
xamp
leso
fage
nci
esmai
ntai
ninggo
ver
nme
ntwar
eho
use
s.

4.BondedWarehouses
 The
sewar
eho
use
sar
eown
ed,manage
dandc
ont
rol
le
dbygo
ver
nme
ntaswe
llas
p
riv
ateage
nci
es.
 Pr
ivat
ebo
nde
dwar
eho
use
shav
etoo
btai
nli
cens
efr
omt
hego
ver
nme
nt.
 Bo
nde
dwar
eho
use
sar
eus
edt
ost
orei
mpo
rte
dgo
odsfo
rwhi
chi
mpo
rtdu
tyi
s
ye
ttobep
aid.
 I
ncas
eofi
mpo
rtedgo
odst
hei
mpo
rte
rsar
eno
tal
lo
wed
t
otak
eawayt
hego
odsfr
omt
hep
ort
sti
lls
uchdu
tyi
spai
d.The
se
war
eho
use
sar
ege
ner
all
yowne
dbydo
ckaut
hor
iti
esandfo
undnear
t
hepo
rts
.

5.Co
-oper
ati
veWar
eho
uses–

 The
sewar
eho
use
sar
eowne
d,manage
dandc
ont
rol
le
dbyc
o-o
per
ati
ves
oci
eti
es.
 The
ypr
ovi
dewar
eho
usi
ngfac
il
it
iesatt
hemo
ste
cono
mic
alr
ate
stot
heme
mbe
rs
o
fthe
irs
oci
ety.

4.
6.
1.
1 Char
act
eri
sti
cso
fani
dealwar
eho
use
o Co
nve
nie
ntl
ocat
ion

o Us
eofme
chani
calde
vic
esfo
rhandl
inggo
ods
 o Ade
quat
esp
acefo
rst
orageo
fgo
ods

o Co
lds
tor
agefac
il
it
yfo
rpe
ris
habl
eit
em

o Pr
ote
cti
ono
fgo
odsfr
oms
unl
ight
,rai
n,wi
nd,
dus
t,mo
ist
ureandp
est
s

o Su
ffi
ci
entp
ark
ings
pac
efo
rve
hic
les

o Ro
undt
hec
loc
kse
cur
ity

o Av
ail
abi
li
tyo
ffi
refi
ght
inge
qui
pme
nt’
s.

4.
7.Adv
ant
ageso
fwar
eho
usi
ng
 Pr
ote
cti
onandp
res
erv
ati
ono
fgo
ods  Co
nti
nui
tyi
npr
odu
cti
on
 Re
gul
arfl
owo
fgo
ods  Co
nve
nie
ntl
ocat
ion
 Eas
yhandl
ing  Fac
il
it
ate
ssal
eofgo
ods
 Us
efu
lfo
rsmal
lbu
sine
ssme
n  Av
ail
abi
li
tyo
ffi
nanc
e
 Cr
eat
iono
femp
loyme
nt  Re
duc
esr
isko
flo
ss