Costing Tools
How To Calculate Stockholding Cost
Use this template to calculate the cost of holding stock in your business. Understanding the true logistics-related costs is the first step to improved logistics management.
What it does
Use this template to calculate the cost of holding stock in your business. Understanding the true logistics-related costs is the first step to improved logistics management.
See it in action
A worked example
Add up what it costs to hold stock for a year. If you also give the average value of the stock, the total becomes a holding rate.
| Cost line | Amount |
|---|---|
| Storage | £100 |
| Insurance | £200 |
| Total | £300 |
With average stock worth £3,000, the holding rate is £300 ÷ £3,000 = 10% a year. Without the stock value the rate is shown as undefined, not as zero.
What data it needs
We will list the data this Tool-module needs when it is ready to launch.