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hi guys Ian Johnson from driv success.com today we're going to talk about the two main inventory cost drivers this is a subject matter that I covered for The Institute of Supply Chain management back in October 2011 for their inside Supply Chain management publication uh we talked about um how to run a successful Dell Push Pull but inside we covered these two main inventory cost drivers so let's get started the first is uh carrying costs okay carrying costs sometimes referred to as as uh the holding cost of inventory this pertains to the cost of holding inventory without sales the first to make our list is the cost of financing okay now your company finances its inventory with outside financing what we're interested here is your daily cost of capital or your daily cost of money so let's say your interest rate is 5% we're going to take that and divide it by 365 days in a year it's going to give us a 0.037% interest rate per day for every d

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