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Cost of Materials Handling: The last major factor is cost of various devices which are available for use. Cost comparisons among various alternatives are often difficult to make. The initial costs of alternative devices should be considered. The usual life of equipment will also affect the decision. Resale or scrap value is the other factor. Perhaps most important are operating costs which includes fuel maintenance repair insurance and labor costs. These costs must be determined for the alternatives before estimates of the value of one device versus another can be determined.
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What are the characteristics of centralised purchasing?
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