Inventory Costs


Inventory costs includes ordering cost plus carrying costs.

  1. Ordering Costs
  2. Carrying Costs
  • Capital Costs

Capital cost is the loss of interest on money invested in inventory building and inventory control equipment.

Storage Space Costs

  • Inventory Service Costs
  • Handling-equipment Costs
  • Inventory Risk Costs
  1. Out-of-stock Costs
  2. Capacity Costs
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