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Carrying cost
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Carrying cost : ウィキペディア英語版
Carrying cost

In marketing, carrying cost or carrying cost of inventory refers to the total cost of holding inventory. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related to perishability, pilferage, shrinkage and insurance.
When there are no transaction costs for shipment, carrying costs are minimized when no excess inventory is held at all, as in a Just In Time production system.〔
Excess inventory can be held for one of three reasons. Cycle stock is held based on the re-order point, and defines the inventory that must be held for production, sale or consumption during the time between re-order and delivery. Safety stock is held to account for variability, either upstream in supplier lead time, or downstream in customer demand. Psychic stock is held by consumer retailers to provide consumers with a perception of plenty.
==Definitions==
The cost consist of four different factors:
# The expenses of putting the inventory in storage
#Salary and wages of workers
#Maintenance in the long term
#All utilities used in caring the storage 〔(【引用サイトリンク】url=http://www.wisegeek.com/what-is-carrying-cost.htm )
Moreover, the carrying cost will mostly appear as a percentage number. It provides an idea of how long the inventory could be hold before the company making a lost, this also tells the manager: how much to order.

抄文引用元・出典: フリー百科事典『 ウィキペディア(Wikipedia)
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