Storage

Reasons for storage

• to reduce transportation – production cost
• to coordinate supply and demand
• to assist in production process
• to assist in the marketing process

Functions

1. Inventory holding (storage)
   • Holding
   • Consolidation
   • Break Bulk
   • Mixing
2. Material handling

• Loading and unloading
• Movement to and from storage
• Order filling

Storage Alternatives

1. Ownership
2. Rental
3. Lease
4. Store in transit