Inventory management cost is the cost associated with managing, ordering, storing and disposing of inventory items. It covers things like warehouse labor costs, purchasing, receiving, delivery and handling charges, obsolescence costs, inventory carrying costs and any other associated expenses related to the acquisition and sale of goods. In essence, effective inventory management helps businesses and organizations maintain competitive prices for their products by controlling the cost of holding onto inventories for too long. Investing in modern technology and adopting efficient strategies can help optimize your inventory control process, reduce stock-outs, improve customer service and maximize profitability.