CARRYING COST

CARRYING COST What factors would you look at and how do they effect the inventory carrying cost.

The CFO of the company has just sent an email  letting you know that the cost of funds for the company will be going up seriously this year and asks we all help out in reducing our COGS.

However, a major supplier has just offered a sizable discount. If your company takes three months of raw material into inventory instead of your normal monthly purchase.

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