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Advantages and disadvantages of warehousing. - SS2 Commerce Past Questions and Answers - page 1

1

What is one advantage of warehousing?

 

A

Increased stockouts

 

B

Lower transportation costs

 

C

Decreased customer satisfaction

correct option: b

Lower transportation costs

 

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2

Which of the following is a disadvantage of warehousing?

 

A

Timely order fulfillment

 

B

Reduced storage costs

 

C

Lack of flexibility

 

correct option: c

Lack of flexibility

 

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3

What is one advantage of warehousing in managing seasonal demand?

 

A

Increased stockouts

 

B

Decreased storage costs

 

C

Improved customer satisfaction

 

correct option: c

Improved customer satisfaction

 

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4

What is a potential disadvantage of warehousing regarding storage costs?

 

A

Decreased storage costs

 

B

Increased profitability

 

C

Higher insurance expenses

 

correct option: c

Higher insurance expenses

 

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5

Which of the following is an advantage of warehousing in terms of risk mitigation?

 

A

Increased risk of theft

 

B

Improved protection from damage

 

C

Enhanced product obsolescence

 

correct option: b

Improved protection from damage

 

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6

What is a potential disadvantage of warehousing in terms of logistics?

 

A

Streamlined movement of goods

 

B

Reduced transportation coordination

 

C

Complexities and potential delays

 

correct option: c

Complexities and potential delays

 

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7

Explain one advantage of warehousing in simple terms.

Warehousing helps reduce transportation costs by storing goods in bulk, allowing businesses to take advantage of lower shipping expenses.

 

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8

Name one potential disadvantage of warehousing regarding storage costs.

 

Higher insurance expenses due to the need for coverage against risks like theft or damage.

 

Users' Answers & Comments
9

How can warehousing contribute to improved customer satisfaction? Provide one reason.

 

Warehousing enables timely order fulfillment by having products readily available, ensuring that customers receive their orders promptly.

 

Users' Answers & Comments
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