Question: 1 Comment on Glups plans to create engineered costs from the perceived benefits of the new material-handling equipment. Glup SA supplies a range of household

1 Comment on Glup’s plans to create engineered costs from the perceived benefits of the new material-handling equipment. Glup SA supplies a range of household soaps to supermarkets in northern Europe.

There are 12 stock-keeping units (skus) in the range. The logistics manager has determined that an investment of €0.5 million on improved material-handling equipment would convert the main distribution centre into a more flexible facility. A number of benefits in improved product availability have been identified – but current information is largely in the form of discretionary costs. Glup’s assessment of the benefits and its plans to convert the justification into engineered costs are outlined below.

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