Pulse coder for Allen Bradley

Good day all. I have a hoist that is used in an acid strip area, for aerospace OEM repair facility. The hoist currently uses prox switches and dogs for postion. My manager wants to automate this line and, given the problems that sometimes arise, I recommended that we use an encoder for position control as opposed to the current postion control. My question is, I have a SLC500 with a 5/03 processor. What recommendations might someone here have as far as a good encoder that will easily interface with the SLC500, and isn't to pricey? The resolution does not need to be great because I'm only dropping baskets in tanks of acid. I'm not sure what other considerations need to be taken into account, so any help would be greatly appreciated.

I have a bunch of older 5/02 5/03 setups where we use a 24 pulse disk with a prox switch and a high speed counter card. This is very simple and easy to set up. It' not gonna be anywhere near encoder accurate but for applications where only moderate accuracry is needed it works great and is very simple to write a good program for it.