September 2010
Intermediate to advanced
288 pages
10h 16m
English
Content preview from Logistics and Supply Chain Management, 4th Edition
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LOGISTIC S & SUPPLY CHAIN MANAGEMENT
70
The other costs that need to be included in the inventory holding cost are the
costs of storage and handling, obsolescence, deterioration and pilferage, as well
as insurance and all the administrative costs associated with the management of
the inventory (see box).
Principles of logistics costing
It will be apparent from the previous comments that the problem of developing
an appropriate logistics-oriented costing system is primarily one of focus. That is,
the ability to focus upon the output of the distribution system, in essence the pro-
vision of customer service, and to identify the unique costs ...
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