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What is Holding Cost in Supply Chain Management? PDF | Download eBooks

Learn Holding Cost definition in supply chain management with explanation to study “What is Holding Cost”. Study holding cost explanation with SCM terms to review supply chain management course for online MBA programs.

Holding Cost Definition

Holding Cost Explanation

Holding expenses are those related with putting away stock that remaining parts unsold. These expenses are one part of all out stock expenses, alongside requesting and lack costs. An association's holding expenses incorporate the cost of products harmed or ruined, just as that of extra room, work, and protection. Limiting stock expenses is a significant production network the board system. Stock is a benefit account that requires a lot of money cost, and choices about stock spending can diminish the measure of money accessible for different purposes. For instance, expanding the stock equalization by $10,000 implies that less money is accessible to work the business every month. This circumstance is viewed as an open door cost.

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