Total Annual Inventory Cost Calculator
Posted by Dinesh onOur inventory cost calculator helps to find out the total annual inventory cost based on demand, order quantity, cost per unit, annual holding & storage cost per unit of inventory and cost of planning order/setup cost.
Total Annual Inventory Cost Calculation
Formula:
tc = (d × c) + ((q ÷ 2) × h) + ((d ÷ q) × s)
Where,tc = total annual inventory cost
d = demand
c = cost per unit
q = order quantity
s = cost of planning order/setup cost
h = annual holding and storage cost per unit of inventory