Storage cost rate: How much does storage cost?
A company's capacities for the distribution and storage of goods and merchandise are limited, and are associated with considerable costs. As a result, it is essential to plan which goods are to be stored and in what quantity and type - and thus kept in stock for fast picking. The so-called storage cost rate is used to determine the extent to which storage costs are related to the yield values of a product.
As part of internal cost allocation, the warehouse cost rate means that a specific price is allocated to each warehouse transaction. Calculated on the basis of storage costs, the costs for pallet spaces or storage capacities in general, for example, can be determined. A high inventory cost rate combined with a high inventory of goods that are rarely or only rarely sold would demonstrate the inefficiency of such stockpiling.
The other way round: By determining the inventory cost rate, a fixed value can be assigned to the respective originator within the company and plans can be made as to how inventory levels should be sensibly organized.
