Inventory Costs Operations Management Assignment Help

Inventory Costs

In making any decision with respect to inventories, the following costs should be taken into consideration:

Holding or Carrying Costs Thi broad category i usually subdivided into three segments: storage costs. capital costs. and obsolete cents/shrinkage cots. Storage costs include the cost of the storage facility in the form of rent or depreciation. insurance, taxes, utilities,  security. and facility personnel.Capital costs can vary, depending on the firm's financial situation. For example. if the firm has an excess of cash, then the capital co title interest lost by putting the money into