Question

which of the following companies would be better served by a private warehouse rather than a public warehouse? (select all that apply.)

□ a fabric importer who has purchased a very large inventory of silk in anticipation of changes in the fashion industry

□ an art dealer with very specific needs such as tight environmental control of temperature, humidity, and pest control, as well as security

□ while a large potato farm needs a great deal of warehouse space immediately after harvest, the space need decreases as the harvest is sold

□ an international retailer of high - end watches and eyewear that are held out of public view until the annual fashion show

Explanation:

• A fabric importer with a large silk inventory: Private warehouses offer more control over storage, which is crucial for valuable and potentially fashion - sensitive silk.
• An art dealer with specific environmental and security needs: Private warehouses can be customized to meet these exacting requirements (temperature, humidity, pest control, security) better than public warehouses which are more of a one - size - fits - most.
• An international retailer of high - end watches and eyewear: Private warehouses can provide the exclusivity and security (keeping items out of public view) that such high - value and brand - sensitive items need.
• A large potato farm with variable space needs: Public warehouses are better for businesses with fluctuating space requirements as they can rent space as needed. A private warehouse would be a poor choice for this company as it would likely lead to underutilization of space for much of the year.

Answer:

• a fabric importer who has purchased a very large inventory of silk in anticipation of changes in the fashion industry
• an art dealer with very specific needs such as tight environmental control of temperature, humidity, and pest control, as well as security
• an international retailer of high - end watches and eyewear that are held out of public view until the annual fashion show