The formula for materials handling cost rate can be represented as:
Materials Handling Cost Rate = Total Materials Handling Costs / Total Material Handled
Explanation:
This formula helps businesses determine how much they are spending on materials handling per unit of material moved. The total materials handling costs include all expenses related to moving, storing, and controlling inventory. By dividing these total costs by the total amount of material handled, businesses can assess the efficiency of their materials handling operations. A lower cost rate may indicate more efficient handling practices, while a higher cost rate could suggest areas for improvement.