Inventory Manager Question:
Please explain what is total stocking cost?
Answer:
Total stocking cost is the cost to the store of holding a good in its inventory. The stocking cost consists of the carrying cost times half the quantity in inventory and the order completion cost times demand divided by the quantity.
In its mathematical form the cost is represented by TSC=(Q/2)C + (D/Q)S.
In its mathematical form the cost is represented by TSC=(Q/2)C + (D/Q)S.
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