Carrying Cost Calculator

June 8, 2023

Cost-cutting is a proven way to drive profits. Inventory carrying costs are one of the simplest areas to cut. If done properly, the exercise will be a simple and harmless one. However, you can't cut inventory costs without having a deeper understanding of your inventory. Inventory is simple enough on the surface, but there is plenty to learn when you look deeper to reduce carrying costs.

Carrying Cost Calculator

Capital costs

Taxes

Insurance

Warehouse costs

Depreciation costs

Recovery costs

Average annual inventory cost

Carrying cost —

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