Storage Costs
Storage costs refer to the expenses associated with keeping goods or materials in a warehouse or storage facility. These costs can include rent or lease payments for the space, utilities, insurance, and maintenance. Businesses must consider these expenses when managing inventory, as high storage costs can impact overall profitability.
Additionally, storage costs can vary based on factors such as location, type of goods, and duration of storage. For example, perishable items may incur higher costs due to the need for climate control, while bulky items may require more space. Efficient inventory management can help minimize these costs.