What constitutes inventory carrying cost in an EOQ model?
A) The cost of the capital tied up in the inventory
B) Storage and insurance expenses
C) Risk of damage, shrinkage, and relocation
D) Risk of obsolescence
E) All of these options are components of Inventory Carrying Costs

Question

Quizplus · Accepted Answer

Inventory carrying costs in an EOQ model include all these components: the cost of capital, storage and insurance expenses, risk of damage, shrinkage, relocation, and obsolescence.

What Constitutes Inventory Carrying Cost in an EOQ Model