Warehouse
Costs

An article by Thomas W. Speh published around 1990 and considered significant by the Warehousing Forum stated that a costing system for warehousing should take account of the space allocated for storage per period of time, and the time taken for handling materials as they are admitted to or discharged from the warehouse. Speh advises businesses on the factors to be taken into account in building up a "handling price" and a "storage price", which will enable an operator to make a profit and take account of risks such as unused space, at the same time as managing buyers' expectations of a fair price.
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