Model for calculating the storage cost of a product: Study case in a logistics environment

Several authors have established how important it is for companies to have accurate product cost information, especially in the actual environment of intense global competition. However, it has been shown that traditional systems do not satisfy these business demands, so in recent years new cost methods have been proposed, nevertheless these are still inaccurate. It is because of this situation that this paper presents a new methodology for determining the storage cost of a product that can be extrapolated to all the links of the supply chain. In turn, we propose a new cost driver, the logistics index, which helps to provide more precise information than traditional methods. It concludes by showing a business case where this model is implemented in a Spanish logistics company.