Total Cost Inventory (TCI) is an accounting and financial metric that measures the total cost of owning and maintaining inventory over a given period of time. TCI includes all costs associated with acquiring, storing, transporting, and selling inventory, including carrying costs such as storage space, insurance costs, storage labor, and more. It’s important to note that TCI does not account for the cost of lost sales due to inventory shortages. Companies use this measure to help them make informed decisions about inventory management, budgeting, and pricing strategies.