Certified Supply Chain Professional (CSCP) Practice Exam

What defines public warehouses?

1. Owned and operated by the manufacturer only

2. Independent businesses offering warehousing services for a fee

3. Exclusive to a single company's inventory storage

4. Always located near manufacturing plants

The correct answer is: Independent businesses offering warehousing services for a fee

Public warehouses are defined as independent businesses that provide warehousing services to multiple clients for a fee. This model allows companies to store their goods without the financial commitment of owning and operating their own warehouse facilities. Public warehouses serve various industries and can accommodate different storage needs, making them a flexible solution for businesses that may not require a dedicated warehouse or have fluctuating inventory levels. This arrangement benefits businesses by allowing them to scale their storage capacity up or down based on demand, thus optimizing their logistics costs. In addition, public warehouses are typically equipped with various facilities and services, such as inventory management and order fulfillment, which can further support the operations of their clients. The other options describe scenarios that do not align with the concept of public warehouses, such as being owned solely by a manufacturer, serving the inventory needs of a single company, or always being located near manufacturing plants. These characteristics do not capture the essence of public warehouse functionality and the services they provide across a broader market.