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3. Human Resource Costs: This is undoubtedly the most difficult element in the evaluation, but essential to understanding the full picture. This component should consider the cost of severance, vacation payouts, benefit continuation, stay bonuses and out placement.
4. Fixed Asset Write-Offs: The decision to shut your warehouse may necessitate writing off the unamortized portion of infrastructure investments including racking, material handling equipment, computer systems and lease-hold improvements.
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David Hetherington
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