Transcription of Understanding Warehouse Costs and Risks
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Understanding Warehouse Costs and Risks
VOLUME 24 NUMBER 7 jUNE 20092009 VOLUME24 NUMBER7 JUNE2009 UnderstandingWarehouseCosts andRisksBy ThomasW. Speh, s Note:Presentedhere isarevisionof an articlewrit-tennearlytwodecadesagoby professorTom Speh,of MiamiUniversity, Oxford, ,thepurposeof thisworkwasto makecertainthatthispricingwouldyieldapro fit,andthebuyerwantedto be sure thatno moneywaslefton revisingthiswork,we recognizetheneedto createamechanismthatis usefulforwholesaledistributors,as wellaslogistics serviceproviderswhoare notusingunit understandtheprocess,in or-derto compare priceto actualvalueof ,storage,hasacostpermonth, handlingmaterialsas theymovein andoutof youarebuyingor sellingwarehouseservices,or simplyprovidingwarehousingservicesforyou rownorganization,themodelsthatarepresent edin thisarticlewillenableyouto isolateandana-lyzethecostsof cost ,buttheycompilethemdifferently. Thegoalof thisarticleis to conveyacostingsystemthatcanbeusedto comparecostsof onewarehousewithanother, oronecompanyto , anycostingsystem,allocationofoverheadcos tsisamatterof judgment,andno specificformulawillbe correctforeveryuser.
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. Harvard Business Review,
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