Question

Which scenario below would suggest building your own private warehouse as opposed to using public warehouse space in a particular location?

a) space is required for product storage only and there are low customer service requirements
b) there are low throughput volumes and low market density
c) there are high customer service requirements and a need for a regional sales headquarters
d) there is fluctuating demand and low market density
e) your products require no special materials handling and have low security needs

Answer 1

Building a private warehouse is suggested when there are high customer service requirements and a need for a regional sales headquarters.

Step-by-step explanation:

The scenario that suggests building your own private warehouse as opposed to using public warehouse space in a particular location is option c) There are high customer service requirements and a need for a regional sales headquarters.

This scenario suggests building your own private warehouse because having high customer service requirements and a regional sales headquarters may require more control and customization over the warehouse operations. A private warehouse can provide the flexibility and dedicated resources needed to meet these specific requirements.

For example, if a company needs to provide specialized customer service, such as fast order processing or customized packaging, then having its own warehouse can ensure that these services can be efficiently and effectively delivered to customers. Additionally, if the company wants to co-locate its sales team at the warehouse to facilitate coordination and collaboration, a private warehouse would be more suitable.