Final answer:
A private warehouse is owned by the enterprise handling the merchandise, while a public warehouse is independently operated. Contract warehousing is a tailor-made service offered by public warehouses. Amazon is an example of a company that has taken advantage of economies of scale with its private warehousing.
Step-by-step explanation:
A private warehouse is operated by the enterprise that owns merchandise handled and stored in the facility. A public warehouse, in contrast, is operated as an independent business. Contract warehousing is a customized extension of public warehousing. An example of a company that uses private warehousing is Amazon, which has significantly benefited from economies of scale by operating large, computerized warehouses in low-rent locations around the world. These facilities are highly automated with robots and low-skilled workers, resulting in low average costs per sale and demonstrating Amazon's ability to leverage economies of scale to its advantage.