课程: Excel Supply Chain Analysis: Solving Procurement Problems

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Calculate total landed cost with inventory holding cost

Calculate total landed cost with inventory holding cost

课程: Excel Supply Chain Analysis: Solving Procurement Problems

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Calculate total landed cost with inventory holding cost

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- [Instructor] As we talked about in the last video, total landed cost represents the complete cost of purchasing and delivering a product to its final destination, including all of the expenses along the supply chain. One of the costs that's often overlooked is the inventory holding costs for goods while they're in transit. In this video, we'll add the inventory holding costs to our TLC calculations. Let's get started. If you've downloaded the exercise files, look for 01_02 Total Landed Cost with Inventory Holding Cost, and go to the tab labeled Single TLC Data. If you prefer to build it from scratch, just copy what I have here on my Excel sheet. Now, we'll calculate the inventory holding cost while the goods are in transit. The formula is inventory holding costs equals unit price times quantity, times annual holding cost percentage, divided by 365 days in a year, times the lead time. In Excel, we'll do this as follows. Click on cell L2, where we want the inventory holding cost to…

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