TY - JOUR AB - Inventory carrying costs, the costs associated with the quantity and value of inventory stored, represent a large portion of the expense attached to distribution activities. These costs also are influenced by the configuration of the physical distribution system utilised. Therefore, accurate assessment of inventory carrying costs is essential to not only controlling the cost area, but also for the analysis of the cost effectiveness of different physical distribution systems. Traditionally, managers who do consider the cost of holding inventory use estimates, industry benchmarks that range from 12 to 35 per cent of the value of the inventory, or textbook figures of 25 per cent. Many sources have quoted the 25 per cent figure and have not changed it in the last 30 years, thus ignoring the impact of inflation on the cost of capital. Also, it is believed that many firms do not even consider inventory carrying costs. VL - 9 IS - 6 SN - 0269-8218 DO - 10.1108/eb014449 UR - https://doi.org/10.1108/eb014449 AU - Lambert Douglas M. AU - Mentzer John T. PY - 1979 Y1 - 1979/01/01 TI - Inventory Carrying Costs: Current Availability and Uses T2 - International Journal of Physical Distribution & Materials Management PB - MCB UP Ltd SP - 256 EP - 271 Y2 - 2024/03/28 ER -