Cost Categories of Inventory
In this course, you will master cost-effective inventory management strategies for streamlined warehouse operations. Ideal for logistics professionals and supply chain managers
Professional Certificate
Earn a career credential that demonstrates your expertise
45 minutes
11 Lessons
11 Quizzes
Exclusive SCMDOJO Cetificate
- 5/5(3 Reviews)
12 Students Enrolled
In this SCMDOJO Academy course, you will gain a practical understanding of the types of inventory costs and how they impact overall supply chain performance.
Led by supply chain expert Benjamin Bloch, this course helps you minimize holding costs, improve operational efficiency, and make data-driven inventory decisions.
What You Will Learn in this Cost Categories of Inventory course?
Discover the key cost categories of inventory and understand how to manage them effectively:
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Cost of Capital
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Fixed and Variable Costs
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Inventory Revaluation and Depreciation
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E&O Cost (Excess and Obsolete)
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Insurance and Taxes
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Administrative and Stocktaking Costs
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Loss and Damage Costs
Each module includes real-world examples and case studies to help you apply these concepts immediately.
Why Learn with Benjamin Bloch:
Benjamin Bloch is a Global Supply Chain Manager at ITRON, overseeing production planning and inventory management for eight manufacturing plants worldwide.
With over 20 years of experience in logistics, purchasing, and operations, Benjamin has led major initiatives in S&OP implementation, warehouse optimization, and digital automation — all focused on improving visibility and control over the types of inventory costs that impact global supply chains.
His lessons combine strategic frameworks with hands-on applications, helping learners understand the financial implications of different types of inventory costs in real-world supply chain operations.
Who Is This Cost Categories in Inventory Course For?
This course is ideal for:
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Logistics and supply chain managers aiming to improve cost visibility
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Procurement and inventory analysts seeking better cost control
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Warehouse and operations leaders focused on efficiency
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Finance professionals interested in understanding supply chain cost drivers
Whether you’re new to inventory management or an experienced professional, this course helps you understand and optimize every type of inventory cost.
Suitable for the following roles
- Entry-Level: Logistics Coordinator, Warehouse Associate, Transportation Coordinator, Shipping Coordinator, Warehouse Assistant
- Mid-Level: Logistics Analyst, Transportation Analyst, Distribution Center Supervisor
- Senior-Level: Logistics Manager, Transportation Manager, Warehouse Manager, Distribution Center Manager
- Executive-Level: Director of Logistics, Vice President of Logistics
- Specialized Titles: 3PL Manager, Reverse Logistics Specialist, Fleet Manager
Requirements
- Access to Internet
- Computer / Laptop / Mobile Device
What Is Included in Cost Categories of inventory?
- Immediate unlimited access to course materials
- 30-day money-back guarantee
- Exercises and quizzes to help you put theory into practice
- English Closed Captions
- Full transcripts in pdf for each lesson
- Suitable for mobile or desktop
- SCMDOJO Certification when you pass the course quiz (accessible from Learning Center post sign in)
The Three Main Types of Inventory Costs
Understanding the types of inventory costs is essential for optimizing operations and reducing expenses.
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Ordering Costs
These are the expenses associated with placing and processing purchase orders — including administrative time, shipping fees, and communication costs. -
Carrying (Holding) Costs
These are the costs of keeping inventory in stock, such as warehouse rent, insurance, depreciation, obsolescence, and the opportunity cost of tied-up capital. -
Stockout Costs
These occur when inventory runs out — leading to lost sales, expedited shipping costs, and reduced customer satisfaction.
Mastering these cost types helps businesses balance inventory levels and reduce total supply chain expenses.
Frequently Asked Questions
FAQ 1: What are the major Cost Categories in supply chain management?
Answer: Major Cost Categories in supply chain management include transportation costs, inventory holding costs, warehousing costs, and procurement costs.
FAQ 2: How can companies identify and analyze different Cost Categories?
Answer: Companies can identify and analyze different Cost Categories through cost accounting, activity-based costing (ABC), and other cost analysis techniques.
FAQ 3: How can companies reduce costs in each Cost Category?
Answer: Companies can reduce costs in each Cost Category through process optimization, supplier negotiation, and implementing cost-saving technologies.
FAQ 4: What is the importance of accurately tracking and analyzing Cost Categories?
Answer: Accurately tracking and analyzing Cost Categories helps companies identify areas for cost reduction, improve profitability, and make informed business decisions.
FAQ 5: How can technology assist in analyzing and managing Cost Categories?
Answer: Technology assists in analyzing and managing Cost Categories by providing data-driven insights, automating cost calculations, and facilitating cost reporting.
Learn more about How to Reduce Costs in Logistics | On-Time with Dr. & Serge Logtech Podcast on SCMDOJO Channel
What you'll learn
Cost Categories of Inventory such as:
- Cost of Capital
- Fix costs
- Variable costs
- Costs of inventory revaluation is & depreciation
- E&O cost
- Insurance
- Taxes
- Administrative costs
- Cost of loss
- Damage costs
- Stocktaking time
Course Content
What's Included
- Immediate unlimited access to course materials
- 30-day money-back guarantee
- Exercises and quizzes to help you put theory into practice
- English Closed Captions
- Full transcripts in pdf for each lesson
- Suitable for mobile or desktop
- SCMDOJO Certification when you pass the course quiz (accessible from Learning Center post sign in)
Requirements
- Access to Internet
- Computer / Laptop / Mobile Device
Earn a sharable certificate
- Showcase on your LinkedIn Profile under the "Licenses & certifications" section
- Download or print out as PDF to share with others
- Share as PDF online to demonstrate your skill
- The certificate's authenticity can be confirmed online using a QR code

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Reviews and Ratings
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I recently completed the SCMDOJO Academy course on Cost Categories of Inventory, and I must say it was an eye-opening experience. Benjamin Bloch's expertise in supply chain management shines through as he meticulously breaks down the various cost components associated with holding inventory. The course not only provided valuable insights into minimizing holding costs but also equipped me with prac
Taking the SCMDOJO Academy course on Cost Categories of Inventory was a game-changer for me as a supply chain manager. Benjamin Bloch's in-depth knowledge and practical approach to inventory management shed light on the often-overlooked cost aspects of holding inventory. The course content was well-structured, covering everything from cost of capital to stocktaking time, and the inclusion of exerc
it was good





