Sections in this article
Manager Dashboard Values
Carrying (Holding) Costs: These costs represent the cost of storing or maintaining inventory. The more that is held, the higher the costs. When companies order too much inventory, this will lead to higher carrying costs.
Here are the most common costs associated with carrying costs:
- Warehouse Space
- Taxes
- Insurance
- Obsolescence and Shrinkage
- Material Handling
- Cost of Money Invested
After determining the values of each variable above, you can take the sum of those values annually and divide it by your Average Inventory Value to determine your carrying rate.
This table code will hold the default value in description 2 and table number 2.
HGH
Table Code Value: HGH
Table Code Description 1: High Performance Inventory Reduction Percent
Table Code Description 2: Default is 22
Table Code Description 3: Reference value in Number 2
Table Flag 1: 1
Table Number 2 (7.2): 22.00
INS
Table Code Value: INS
Table Code Description 1: Insurance
Table Code Description 2: Default is 0.5
Table Code Description 3: Reference value in Number 2
Table Code Description
Table Flag 1: 1
Table Number 2 (7.2): .50
LOW
Table Code Value: LOW
Table Code Description 1: Low Performance Inventory Reduction Percent
Table Code Description 2: Default is 10
Table Code Description 3: Reference value in Number 2
Table Flag 1: 1
Table Number 2 (7.2): 10.00
MDM
Table Code Value: MDM
Table Code Description 1: Medium Performance Inventory Reduction Percent
Table Code Description 2: Default is 15
Table Code Description 3: Reference value in Number 2
Table Flag 1: 1
Table Number 2 (7.2): 15.00
MON
Table Code Value: MON
Table Code Description 1: Cost of Money
Table Code Description 2: Default is 15
Table Code Description 3: Reference value in Number 2
Table Flag 1: 1
Table Number 2 (7.2): 15.00
OBS
Table Code Value: OBS
Table Code Description 1: Obsolescence and Spoilage
Table Code Description 2: Default is 1
Table Code Description 3: Reference value in Number 2
Table Flag 1: 1
Table Number 2 (7.2): 1.00
SHK
Table Code Value: SHK
Table Code Description 1: Shrinkage and Damage
Table Code Description 2: Default is 1
Table Code Description 3: Reference value in Number 2
Table Flag 1: 1
Table Number 2 (7.2): 1.00
STR
Table Code Value: STR
Table Code Description 1: Storage Costs
Table Code Description 2: Default is 4
Table Code Description 3: Reference value in Number 2
Table Flag 1: 1
Table Number 2 (7.2): 4.00
TAX
Table Code Value: TAX
Table Code Description 1: Taxes
Table Code Description 2: Default is 2.5
Table Code Description 3: Reference value in Number 2
Table Flag 1: 1
Table Number 2 (7.2): 2.50
