Inventory holding costs are an important part of any business’s budget. These costs are associated with the cost of storing, managing, and protecting the inventory a business holds. This includes costs such as storage space, insurance, taxes, labor, and the cost of capital tied up in the inventory. The cost of inventory holding can vary depending on the size and type of inventory, as well as the industry. In general, inventory holding costs can range from 10-30% of the total inventory value. It is important for businesses to keep track of their inventory holding costs in order to ensure that they are not overspending and that their inventory is being managed efficiently. Keeping track of inventory holding costs can help businesses make better decisions when it comes to their inventory management strategies.
