Transcription of Methodology of Calculating Inventory Carrying Costs
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Methodology of Calculating Inventory Carrying Costs
1 REM AssociatesA S S O C I A T E SMANAGEMENT CONSULTANTS20 NASSAU STREET, SUITE 244 PRINCETON, NEW JERSEY 08542 Methodology of CalculatingInventoryCarryingCosts2 REM AssociatesContents!The Truth About Carrying Inventory !What Makes Up Inventory Carrying Costs ?! Inventory Carrying Cost Summary! Inventory Carrying Costs Studies3 REM AssociatesThe Truth About Carrying Inventory !Over 65% of most companies do not compute Inventory Carrying Costs , they use rough estimates!Leading logistics experts place the cost of Carrying Inventory between 18% per year and 75% per year depending on the type of products and business!The standard rule of thumb for Inventory Carrying cost is 25% of Inventory value on hand!The cost of capital is the leading factor in determining the percentage of Carrying costStudies of industries about Inventory Carrying Costs reveal the following ..4 REM AssociatesWhat Makes Up Inventory Carrying Costs ?
3 REM Associates The Truth About Carrying Inventory! Over 65% of most companies do not compute inventory carrying costs, they use rough estimates
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