Holding costs

Reading Time: < 1 minute The expenses incurred by keeping unsold inventory in storage are known as holding costs.   Holding costs also include the price of goods damaged or spoiled, storage space costs, labor, and insurance.

Hedge inventory

Reading Time: < 1 minute The word “hedging” refers to lowering or controlling risk, from which the term “hedge inventory” is derived. Hedge inventory is extra inventory that is bought or kept on hand as a safety net with the aim of lowering or limiting risks related to future price fluctuations or maximizing their benefits. 

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