Marginal Inventory Cost | Concept

Ole Ersoy
Sep - 20  -  1 min

The Marginal Inventory Cost is the cost incurred as the result of stocking one additional unit.

Example

The Inventory Cost at a stocking level of 10 units and a fixed demand level is $20,000.

The Inventory Cost at a stocking level of 11 units and a fixed demand level is $23,000.

The Marginal Inventory Cost is $3000.