Question

Your job is to determine if your company should invest in a private warehouse or public warehouse depending on the business situation. In market 2, you have fluctuating demand and your customers in this market have low service requirements. Do you recommend a private or public warehouse?

Answer 1

Public warehouse

Step-by-step explanation:

Public warehousing becomes more effective than than private warehousing when there is low volume with high variability in demand and significant seasonality which is the case here as there is fluctuating demand.