Which of the following conditions when met, economically justifies the addition of new warehouse facilities?
Which of the following conditions when met, economically justifies the addition of new warehouse facilities?
Economically, the addition of new warehouse facilities is justified when the cost of warehousing and local delivery is less than the cost of direct shipment to customers. This means that it would be cheaper to store goods in a local warehouse and deliver them locally, rather than shipping directly from a central location.
Cost of WH is less than shipment