MULTI-YEAR HOLDING COSTS FOR SECONDARY ITEMS.
ARMY LOGISTICS MANAGEMENT CENTER FORT LEE VA
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A formula is developed and justified for calculating holding costs for stock held for several years. Input is holding cost rates already available. It is shown that true holding costs over a multi-year time span are significantly smaller than would be calculated by a linear projection of single year holding cost rates, i.e. by multiplying the single year rates by the number of years stock is to be held. Author
- Operations Research