|Overview: Holding Costs|
The costs of holding inventory.
What are Holding Costs?
John Spacey, updated on December 12, 2016
Holding costs are business expenditures related to goods that are held in supply chain facilities such as warehouses. These include rent, utilities, security, shrinkage and other costs direct related to storage. In many industries, a rule of thumb is used that holding costs represent about one third the value of goods over a year. This approximation would predict that if you hold $1 million of plastic Christmas trees in storage for a year, it would result in total holding costs of about $333,333.
Business CostsThis is the complete list of articles we have written about business costs.
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A list of common types of business cost.
A principle of financial accounting.A list of common types of business cost.
A definition of cost escalation with an example.
Common examples of cost reduction.
The common types of cost estimate.A definition of relevant cost with examples.
Detailed examples of how to map out the cost structure of a business.
The definition of cost competition with examples.
An overview of cost goals with examples.A list of common business risks. The four things that can be done about risk. A list of techniques for reducing risk. The potential that you'll achieve too much of a good thing.
Any risk that people have a strong aversion too.
The surprising similarities between risk and opportunity.
The difference between risk management and contingency planning.The common types of uncertainty in decision making and strategy.
The common types of inventory risk.
An overview of common business risk management techniques.
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