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Inventory Carrying Cost
The total cost associated with holding inventory, including storage, insurance, taxes, depreciation, and the opportunity cost of tied-up capital.
Setup Cost
Represents the expenses involved in preparing a machine, process, or system for a manufacturing run or production activity, which can include equipment adjustments and labor.
EOQ Model
Economic Order Quantity model is used in inventory management to determine the optimal order size that minimizes the total cost of inventory, including holding costs and ordering costs.
Total Annual Inventory Costs
The comprehensive sum of all expenses associated with holding and managing inventory over a year, including storage, insurance, and obsolescence costs.
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