The cost of holding inventory incurred by the shipper's supply chain network is
A)transportation cost.
B)inventory cost.
C)facility cost.
D)processing cost.

Question

Quizplus · Accepted Answer

Inventory cost refers to the cost of holding inventory, which includes expenses such as storage, handling, insurance, and obsolescence. Transportation cost refers to the cost of moving inventory from one point to another. Facility cost refers to the cost of maintaining facilities such as warehouses and distribution centers. Processing cost refers to the cost of processing inventory, such as packaging or assembling products. Of these options, only inventory cost directly relates to the cost of holding inventory.

The Cost of Holding Inventory Incurred by the Shipper's Supply