The variation in warehouse operations is enormous and it is almost impossible to produce specific costings, as is possible for the operation of vehicles. Therefore, in this section we confine the analysis to an examination of the factors which influence costs and the provision of some general order of magnitude costs for specific aspects of warehouse operations.
The two main costs associated with the warehouse are labour and property costs. Both of these are influenced by a range of factors which are set out in subsection two. Both these major cost items are also affected by location of the warehouse.