The total cost of holding inventory over time — including the cost of capital tied up, warehousing, insurance, shrinkage, and obsolescence. Usually expressed as a percentage of inventory value per year, and a key input to the EOQ calculation.
The total cost of holding inventory over time — including the cost of capital tied up, warehousing, insurance, shrinkage, and obsolescence. Usually expressed as a percentage of inventory value per year, and a key input to the EOQ calculation.