Inventory Carrying Cost (ICC) is a formula that helps businesses measure the cost of holding and storing inventory. ICC combines both fixed costs, such as storage and handling fees, with variable costs like insurance, taxes and others. By determining the total amount of money spent on inventory in any given period, ICC helps businesses make more informed decisions about how much inventory to keep, how often to restock and how to optimize their supply chain. Ultimately, it helps businesses reduce costs associated with carrying inventory and maximize profits.