Logistics Wordbook

Inventory Carrying Cost

Logistics Glossary

One of the elements comprising a company’s total supply chain management costs. Inventory carrying cost, or carrying costs, is an accounting term that identifies all business expenses related to holding and storing unsold goods. The total figure would include the related costs of warehousing, salaries, transportation and handling, taxes, and insurance as well as depreciation, shrinkage, and opportunity costs.

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