Procurement & Supply Chain / Finance
Inventory Carrying Cost ~ (aliases: holding cost, cost of carry, carrying-cost rate, inventory holding rate)
The annual cost of holding inventory, expressed as a rate on inventory value, capital, storage, service, and risk.
The fork, why two teams get different numbers
What rate, and which components are inside it.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: APICS/SCOR ยท GAAP/ASC 330 (inventory valuation)