Description: Percentage of total inventory value a company pays to maintain inventory in storage.
Formula: (Inventory Service Costs + Inventory Risk Costs + Capital Cost + Storage Cost) / Total Inventory Value
« Back to Glossary IndexDescription: Percentage of total inventory value a company pays to maintain inventory in storage.
Formula: (Inventory Service Costs + Inventory Risk Costs + Capital Cost + Storage Cost) / Total Inventory Value
« Back to Glossary Index