{"id":2529,"date":"2008-10-10T14:02:00","date_gmt":"2008-10-10T14:02:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2008\/10\/10\/calculating-inventory-carrying-costs\/"},"modified":"2021-07-16T04:08:52","modified_gmt":"2021-07-16T08:08:52","slug":"calculating-inventory-carrying-costs","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/calculating-inventory-carrying-costs\/","title":{"rendered":"Calculating Inventory Carrying Costs"},"content":{"rendered":"<p>Inventory carrying costs drive decisions such as order quantity, order timing, and so forth. Most experts agree that inventory carrying costs are between 18 and 35% of the inventory\u2019s value. But how is that percentage calculated? This NLPA video, <a href=\"https:\/\/youtu.be\/aHKJVag_v5U\">Inventory Carrying Cost Calculation<\/a> answers that question.<\/p>\n<p><a href=\"https:\/\/www.certitrek.com\/nlpa\/individuals\/membership\/\">Become a member of one of the world\u2019s largest procurement associations today.<\/a><\/p>\n<p><strong>Recommended Reading<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/impact-of-inventory\/\">Impact of Inventory<\/a><\/li>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/inventory-puchasing\/\">Inventory Purchasing<\/a><\/li>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/courses\/profitable-inventory-management-and-control\/\">Profitable Inventory Management and Control<\/a><\/li>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/inventory-turnover-ratio\/\">Inventory Turnover Ratio<\/a><\/li>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/purchasing-and-inventory-management\/\">Purchasing and Inventory Management<\/a><\/li>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/myth-learning-inventory-management-is\/\">Myth: Learning Inventory Management Is Painful<\/a><\/li>\n<\/ul>\n<p>Visit <strong><a href=\"https:\/\/lms.nextlevelpurchasing.com\/\">NLPA Learning<\/a><\/strong>, the new home to all of our certifications and online courses. The Learning site also includes learning resources, including live and on-demand webinars, publications and reports, articles, templates, white papers, and much more!<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inventory carrying costs drive decisions such as order quantity, order [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4133,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2529","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.4 (Yoast SEO v19.13) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Calculating Inventory Carrying Costs - Next Level Purchasing Association (NLPA)<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/calculating-inventory-carrying-costs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Calculating Inventory Carrying Costs\" \/>\n<meta property=\"og:description\" content=\"Inventory carrying costs drive decisions such as order quantity, order [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.certitrek.com\/nlpa\/blog\/calculating-inventory-carrying-costs\/\" \/>\n<meta property=\"og:site_name\" content=\"Next Level Purchasing Association (NLPA)\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/NextLevelPurchasing\/\" \/>\n<meta property=\"article:published_time\" content=\"2008-10-10T14:02:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-07-16T08:08:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/11\/nlpa-images-143.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"1067\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Galo Matagay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:site\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Galo Matagay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/calculating-inventory-carrying-costs\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/calculating-inventory-carrying-costs\/\"},\"author\":{\"name\":\"Galo Matagay\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#\/schema\/person\/72d094fab77892483dfa6e061cb27eaa\"},\"headline\":\"Calculating Inventory Carrying Costs\",\"datePublished\":\"2008-10-10T14:02:00+00:00\",\"dateModified\":\"2021-07-16T08:08:52+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/calculating-inventory-carrying-costs\/\"},\"wordCount\":124,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#organization\"},\"articleSection\":[\"Procurement\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.certitrek.com\/nlpa\/blog\/calculating-inventory-carrying-costs\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/calculating-inventory-carrying-costs\/\",\"url\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/calculating-inventory-carrying-costs\/\",\"name\":\"Calculating Inventory Carrying Costs - 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