In: Operations Management
Describe three different types of warehouses and the advantages of each?
3 Types of warehouses are
1. Public warehouse
A public warehouse is a warehouse that requires a license by the government to be operated by professionals. It is open for any company or firm to use the space for a certain fee. Wholesalers and manufacturers are the ones who utilize these services for storage. The functions of these warehouses are under the government's regulations.
Advantages
2. Bonded warehouse
This type of warehouse can be owned by both government and private entities, however, a license is required by the private firms. The storage of imported goods is in this type of warehouse. Duties are charged to firms or companies that import goods and it is stored till the duty is paid.
Advantages
3. Private warehouse
Private entities or companies own this type of warehouse and a few examples of such entities are manufacturers and wholesalers. The authority of the warehouse is entirely in the hands of these entities. The warehouse is constructed to fit products or goods tailored to the owners of the warehouse. This depends on if it is leased or not.
Advantages