GAZİ UNIVERSITY

FACULTY OF ENGINEERING
DEPARTMENT OF CHEMICAL ENGINEERING

STORAGE OF RAW, INTERMEDIATE AND PRODUCT

 1. RAW MATERIALS
Raw materials are the constituent parts input into a production process, where they are
transformed into finished goods.[5]

Picture 1. Raw Material Processing[5]

This is where inventory management comes into the picture. It is important to maintain raw
materials inventory in the proper quantity and at the right place to avoid any mishaps since the
finished products that we sell are made from these materials.[5]

2. WHAT IS THE STORAGE?

Storage involves making of proper arrangement for retaining goods in perfect state without
losing properties and qualities till these are needed by the ultimate consumer and taken to the
market. In simple words, storage is the process of preserving goods from the time they are
produced till they are needed for consumption.[1]

2.1. Functions, Benefits and Importance of Storage:

The importance of storage can be recognized with the various benefits/functions it provides:

1. Creation of Time Utility:

There are products which are produced continuously throughout the year while consumption
is seasonal. Storage enables goods to be made available to buyers whenever they are in
demand.

2. Creation of Place Utility:

Another function of storage is to make goods available to a buyer at his place of business
when he needs them. It creates place utility by warehouse location, e.g., a retailer can obtain
goods within a few hours or minutes by contacting the wholesaler’s storage.

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3. Stabilising Prices:

Another function of storage is to stabilise prices by making the goods available in the market
whenever there is demand.

 4. Regular Production:

Storage performs the function of smoothing out irregularities in production. In the present age
of competition, every manufacturer tries to produce in anticipation of demand so as to provide
free supply in the market well in time.

5. Reduction of Risk:

Storage reduces the risk of owner of goods as the owner of goods can store merchandise with
reputed warehouses which absorb a part of the risk.

6. Saving in Transportation Costs:

Storage allows accumulation of stocks to be transported in bulk quantities so as to reduce the

transportation costs.[1]

2.2. Need for storage:

The need for storage arises mainly because of the time gap between production and
consumption of goods. The need for storage is highlighted by the following reasons:

1. In the present competitive world, production is carried on in anticipation of demand and not
necessarily for immediate sale. Thus, the producer has to make sufficient arrangements for the
storage of goods.

2. Many commodities are consumed regularly throughout the year while their production has
seasonal character. Such commodities have to be kept in storage in the season when they are
available in plenty to be used or sold on demand.

3. Some commodities have regular production but seasonal consumption. Such commodities
also need storage for the period when there is no demand.

4. Raw materials have to be stored to enable continuous production without stoppage.

5. Storage of goods is a necessity during depression when there is little demand and prices are
going down.

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6. Middlemen have to keep stock of goods to enable them earn profits by storage of goods and
making the goods available on demand.

7. Storage is needed to adjust demand and supply of goods in the market.[1]

A range of options are available for raw materials storage, depending on the product and how
it is used. These include indoor and outdoor facilities with pollution controls, security
measures, and a number of other steps to protect materials in storage. The best option can
depend on a company’s needs and regulatory requirements that may stipulate specific
handling for hazardous materials.

Outdoor raw materials storage is not recommended for many materials because it can expose
products to weathering and also creates a risk of environmental contamination. Chemicals
may leach into the groundwater or could come into contact with storm water runoff, which
might carry them into neighbouring bodies of water.

Indoor storage options include warehouse facilities, which may be climate-controlled if

necessary, along with storage rooms. This type of raw materials storage can hold barrels, large
storage bins, pallets, or piles of materials for processing. One advantage to indoor storage is
that it is easier to secure supplies. Toxins can be confined in specific areas and facilities may
use air filtration and other measures to control the environment and protect workers.[2]

3. STORAGE IMPORTANCE IN ENGINEERING

Storage tanks are containers that hold liquids, compressed gases or mediums used for the
short- or long-term storage of heat or cold.

Storage tanks serve two major purposes. One is to provide storage volume and the other is to
provide pressure to the distribution system. A particular tank can serve one or both purposes
depending on its location within the system and its type of configuration.[3]

There are a variety of tank types or configurations. Construction materials for the various
types of tanks are generally concrete and steel although some tanks for small storage volumes
and special uses could be constructed.

Since most liquids can spill, evaporate, or seep through even the smallest opening, special
consideration must be made for their safe and secure handling. This usually involves building
a bunding, or containment dike, around the tank, so that any leakage may be safely contained.

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Some storage tanks need a floating roof in addition to or in lieu of the fixed roof and structure.
This floating roof rises and falls with the liquid level inside the tank, thereby decreasing the
vapor space above the liquid level. Floating roofs are considered a safety requirement as well
as a pollution prevention measure for many industries including petroleum refining.

While steel and concrete remain one of the most popular choices for tanks, glass-reinforced
plastic, thermoplastic and polyethylene tanks are increasing in popularity. They offer lower
build costs and greater chemical resistance, especially for storage of speciality chemicals.[4]

3.1.Storage Tank Types

-Variable Vapor Space Tank

-Fixed-Roof Tank

-External Floating Roof Tank

-Internal Floating Roof Tank

-LNG Storage Tank

-Horizontal Tank

-Domed External Floating Roof Tank [6]

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REFERENCES
1. Agarwal, R., 2019, Storage: Meaning, Functions and Need for Storage Retrieved from
https://www.yourarticlelibrary.com/business/storage-meaning-functions-and-need-for-
storage/42128
2. McMahon, M., 2022, What Are the Different Types of Raw Materials Storage?
Retrieved from https://www.aboutmechanics.com/what-are-the-different-types-of-
raw-materials-storage.htm
3. Minnesota Rural Water Association, Storage Retrieved from
https://www.mrwa.com/WaterWorksMnl/Chapter%2022%20Storage.pdf
4. Storage tank. (2018, February). In Wikipedia.
https://en.wikipedia.org/wiki/Storage_tank
5. Vaidya, D., 2017, Raw Materials Retrieved from
https://www.wallstreetmojo.com/raw-materials/
6. Wermac, Storage Tanks Retrieved from
https://www.wermac.org/equipment/storage_tanks_vessels_general.html