Category Inventory Management

Carrying Cost or Holding Cost

These are the cost incurred to store the inventory into the warehouse or store rooms.  This means that it covers all the depreciation expense of the machines and fixed assets used for keeping the inventory. It also involves the cost…

Ordering Cost

Ordering cost is the cost of ordering the raw materials required in the production. This is a broad term but in short we can define it by saying it involves all the cost from the creation of the requisition of…