Final answer:
Joseph Enterprises Inc. should make use of a warehouse for storing their seasonal products, benefiting from flexibility and low costs. This approach aligns with the efficient warehousing strategies employed by Amazon to leverage economies of scale.
Step-by-step explanation:
Joseph Enterprises Inc., which produces "Chia Pets" only during the holiday season, should make use of a warehouse. Unlike a factory, retail store, or distribution center, a warehouse is ideal for storing products for a period of time until they are needed for sale, especially when the need for storage is seasonal and not regular. By using a warehouse, Joseph Enterprises can take advantage of low storage costs and flexibility much like Amazon, which utilizes warehouses in low-rent areas to hold its inventory, achieving low average costs per sale through the benefits of economies of scale. Warehouses are also efficient for managing large volumes of products with processes that are often highly computerized.