What is the justification for establishing a warehouse?

Establishing a warehouse is justified by the need for efficient inventory management, which enables businesses to store goods closer to their customers and reduce delivery times. It also allows for bulk purchasing and storage, leading to cost savings and better cash flow management. Additionally, warehouses facilitate order fulfillment and help manage fluctuations in demand, ensuring that products are available when needed. Overall, a warehouse enhances operational efficiency and supports a company's growth and competitiveness.