Inventory-carrying costs represent substantial dollars for manufacturers. These inventory-carrying costs include storage charges, cost of capital, taxes and insurance, and depreciation and obsolescence. Carrying costs might run as high as ________ of the value of the inventory.

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Inventory-carrying costs can be significant, often running as high as 30 percent of the value of the inventory. This includes various expenses such as storage, capital costs, taxes, insurance, and costs related to depreciation and obsolescence.

Inventory-Carrying Costs Represent Substantial Dollars for Manufacturers