Given below are two statements:
Statement I: For products requiring long-term storage, such as agricultural products, warehouses are located near production sites.
Statement II: Products which are bulky and hard to ship, such as machinery and automobiles, are kept in warehouses near production sites.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Statement I is correct but Statement II is incorrect.
Statement I: For products requiring long-term storage, such as agricultural products, warehouses are located near production sites. — Correct. Goods needing long-term storage, like agricultural products, are kept in warehouses near production sites. This keeps transport charges low.
Statement II: Products which are bulky and hard to ship, such as machinery and automobiles, are kept in warehouses near production sites. — Incorrect. Bulky and hard-to-ship goods such as machinery and automobiles are kept near the market. Perishable goods like bakery items, meat and vegetables are also kept near the market.
NCERT (2026-27 Edition): “3. Warehousing: … Generally larger the number of warehouses a firm has, lesser would be the time taken in serving customers at different locations but greater would be the cost of warehousing and vice-versa. Thus the firm has to strike a balance between the cost of warehousing and the level of customer service. For products requiring long-term storage (such as agricultural products) the warehouses are located near production sites. This helps in minimising the charges on transportation of the goods. On the other hand, the products which are bulky and hard to ship (machinery, automobiles) as well as perishable products (bakery, meat, vegetables) are kept at different locations near the market.” |