Identifying and Controlling Costs
The true costs of operating a warehouse are actually a combination of fixed and variable outlays. In the cost examples to be shown here, costs are shown as totally variable and this reflection is accurate if volume is known. However, if the volume is subject to substantial change, the assumed costs for space, labor and handling equipment must be examined.
KeywordsAverage Inventory Order Picking Practical Handbook Warehouse Operation Fork Lift Truck
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- 1.Most of this chapter is from “How Much Does Warehousing Cost?” by Robert E. Ness. This article was published in Vol. 2, No. 3 of Warehousing Forum. Ackerman Company, Columbus, OH.Google Scholar