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Understanding Warehouse Costs and Risks

VOLUME 24. VOLUME 24 NUMBER. NUMBER 77 JUNE. jUNE 2009. 2009. Understanding Warehouse Costs and Risks By Thomas W. Speh, Editor's Note: Presented here is a revision of an article writ- the handling cost center. The largest component is the la- ten nearly two decades ago by professor Tom Speh, of Miami bor used to handle the product that moves through the dis- University, Oxford, Ohio. When written, the purpose of this tribution center. It includes receiving, put-away, order se- work was to provide a guideline for public Warehouse opera- lection, and loading. It also may include labor to tors and their customers. Both buyer and seller were accus- re- Warehouse , repackage, or refurbish damaged product. tomed to a transactional pricing and costing system that Handling also includes all Costs associated with the combined a monthly price per unit for storage with the Costs of equipment used to handle product in the Warehouse , such materials handling and administrative services.

Jun 11, 2009 · VOLUME 24 • NUMBER 7 • jUNE 2009 2009 VOLUM E24 •NUMB R7•JUN 2009 Understanding Warehouse Costs and Risks By Thomas W. Speh, Ph.D. Editor’s Note: Presented here isarevision of an article writ-

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