What are wearing costs?

Transmission costs are a measure of costs associated with possession of stocks for a certain period of time. The costs take into account a number of factors, including housing costs in a storage tank, any services used in maintaining this storage device, and salary and wages paid for staff for monitoring and maintaining this inventory in the long run. The costs of purposes are usually mentioned as a percentage and can give companies a good idea of ​​how long the inventory can be held before it is no longer profitable.

When calculating the cost of carrying, manufacturers look at several other problems that contribute to the total cost of inventory maintenance. If the goods are held as part of the stock limited durability, the perishable factor becomes very important. For products that are likely to be replaced by other products for a certain period of time, given that the potential for obsolescence is also becoming a very important. Potential for theft of property contained in the inventory must be rThotly considered as part of the calculation, as well as the potential for accidental damage to one or more components of the inventory.

In general, the goal of any business is to maintain the lowest possible transfer costs. This means finding ways to move the existing inventory so that the total inventory value remains under a certain number. This automatically helps to reduce the possibility of forging and also minimize chances that the components in the inventory will be outdated and must be discarded. Stable turnover in the inventory also helps with costs such as insurance and tax costs, thereby reducing the total costs incurred by the company within the operational process.

One approach that helps reduce the shipping costs of stocks is to implement what is as a progress as in time production. With this model, the manufacturer produces goods at speed, which remains only slightly above demand. This means that the finished goods do not stay in the inventory after dElší time because they are quickly delivered to fill in existing orders. This results in much smaller stock at any given moment, which in turn allows you to enjoy less storage costs, reduce tax debt from the inventory, and generally maintain the cost of transferring to a minimum.

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