The Cost of Holding is a business term used to describe the costs associated with keeping a certain amount of inventory on hand. This includes the cost of storage, insurance, taxes, and any other costs associated with maintaining the inventory. The cost of holding can also include the cost of ordering and receiving the inventory, as well as the cost of any necessary repairs or maintenance. In addition, the cost of holding can also include the cost of any inventory that is lost or damaged due to theft, natural disasters, or other unforeseen circumstances. By understanding the cost of holding, businesses can better manage their inventory levels and ensure that they are able to maintain the right balance between inventory costs and customer service.
