The following factors are taken into consideration in deciding the warehouse location
- Number of markets to be served
- Location of production centers
- Quality, availability and versatility of transportation
- Quantity to be transported or stored.
- The land should be not too expensive.
- The site should be reasonably level, well drained and not too far from essential services such as water and electricity.
- The site ought to be of sufficient size for its intended purpose with adequate space for maneuvering vehicles, an area available for an outside stockyard if required and some extra room for possible future expansion.
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