Question

Mechanico is a manufacturing plant and has been in operation for more than twenty years. It now needs to invest in a warehouse to store its finished products. What are the costs that Mechanico can foresee as part of the cost?

Answer 1

Mechanico cost on warehousing would largely depend on whether the company will rent or build its own warehouse  They can also opt to hire the third patry who handle their finished product for them. If the company opted to build, then mainly cost would be in construction, the equipment to used in warehousing, manpower cost and logistics cost for transfer of goods. If otherwise, Mechanico will incur cost in logistics, subcontract manpower and equipment and leasing cost.