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November 8, 2022

The chief executive officer (CEO) of your firm is being asked to approve a major expenditure for a new warehouse.

The chief executive officer (CEO) of your firm is being asked to approve a major expenditure for a new warehouse. Before he approves it, you were asked to discuss with him an alternative he has heard of: public warehousing. Prepare a short discussion covering the following specific points:

What exactly is public warehousing?

What are the pros and cons of using it?

What is the range of services they typically offer?

If the objective is to avoid the cost of building and staffing a new warehouse for the firm, which of these services, or others as well, would you ask the public warehouse to perform for you? Why?

What is the downside of using public warehousing?

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