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Chain Costing
Prof. Costas Panou
Lecture #5 in M.Sc
New Technologies in Shipping and
Transportation
Outline
Costing SC
Logistical costing
An important activity of Logistics
Management in order to reduce logistical
costs is to improve performance
Grouping of SC costs
Grouping of SC costs
Hines (2004) defines time related costs as
overheads cost that are predominantly fixed.
e.g. the cost of storing and holding inventory
requiring space to be rented or acquired over a
given period. Fixed cost do not vary according
to changes in volume or production output
whereas variable costs will change as the level
of output or volume changes.
Types of costs
Importance of cost
reduction
Methods of logistical
costing
Activity Based
Costing