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1 Other formulas that you can solve using the same Inputs

Economic Order Quantity
Economic Order Quantity=((2*Fixed cost per order*Demand in units per year)/Carrying cost per unit per year)*(1/2) GO

Total Inventory Cost Formula

Total Inventory Cost=Carrying cost per unit per year*(Quantity of each order/2)+Fixed cost per order*(Demand in units per year/Quantity of each order)
More formulas
Free Cash Flow GO
Free Cash Flow to Firm GO
Break-Even Point GO
Contribution Margin per Unit GO
Acid Test Ratio GO
Target Inventory Investment GO
Weighted Average Cost of Capital GO
Return on capital employed GO
Solvency Ratio GO
Economic Order Quantity GO
Percentage off GO
Operating Expense Ratio GO
Beginning Inventory GO
Estimate at completion GO
Diluted Earnings per Share GO
Days in Inventory GO
Debt Coverage Ratio GO
Dividends Per Share GO
Estimated Earnings GO
Preferred Stock GO
Retention Ratio GO

How to Calculate Total Inventory Cost?

Total Inventory Cost calculator uses Total Inventory Cost=Carrying cost per unit per year*(Quantity of each order/2)+Fixed cost per order*(Demand in units per year/Quantity of each order) to calculate the Total Inventory Cost, Total inventory cost is the total cost associated with ordering and carrying inventory, not including the actual cost of the inventory itself. Total Inventory Cost and is denoted by TIC symbol.

How to calculate Total Inventory Cost using this online calculator? To use this online calculator for Total Inventory Cost, enter Carrying cost per unit per year (Ch), Quantity of each order (Q), Fixed cost per order (Cf) and Demand in units per year (D) and hit the calculate button. Here is how the Total Inventory Cost calculation can be explained with given input values -> 1.252E+7 = 500000*(50/2)+500*(2000/50).

FAQ

What is Total Inventory Cost?
Total inventory cost is the total cost associated with ordering and carrying inventory, not including the actual cost of the inventory itself and is represented as TIC=Ch*(Q/2)+Cf*(D/Q) or Total Inventory Cost=Carrying cost per unit per year*(Quantity of each order/2)+Fixed cost per order*(Demand in units per year/Quantity of each order). Carrying cost per unit per year refers to the total cost of holding inventory for a unit per year, The quantity of each order determines the number of quantity for each order, Fixed costs per order are the cost that does not change with an increase or decrease in the amount of goods or services produced or sold and Demand in units per year represents the total demands of the unit per year.
How to calculate Total Inventory Cost?
Total inventory cost is the total cost associated with ordering and carrying inventory, not including the actual cost of the inventory itself is calculated using Total Inventory Cost=Carrying cost per unit per year*(Quantity of each order/2)+Fixed cost per order*(Demand in units per year/Quantity of each order). To calculate Total Inventory Cost, you need Carrying cost per unit per year (Ch), Quantity of each order (Q), Fixed cost per order (Cf) and Demand in units per year (D). With our tool, you need to enter the respective value for Carrying cost per unit per year, Quantity of each order, Fixed cost per order and Demand in units per year and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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