Supply Chain Glossary - C

Supply Chain Glossary - C

cargo container capacity

The inside usable cubic volume of a container.

A shipment that qualifies for a reduced freight rate because it is greater than a specified minimum weight. Since carload rates usually include minimum rates per unit of volume, the higher LCL (less than carload) rate may be less expensive for a heavy but relatively small shipment.

The cost of holding inventory, usually defined as a percentage of the dollar value of inventory per unit of time (generally one year). Carrying cost depends mainly on the cost of capital invested as well as such costs of maintaining the inventory as taxes and insurance, obsolescence, spoilage, and space occupied. Such costs vary from 10% to 35% annually, depending on type of industry. Carrying cost is ultimately a policy variable reflecting the opportunity cost of alternative uses for funds invested in inventory. Syn: holding costs.


close

Demand Management, Inc. Cookie Policy

We have published a new cookie policy. It explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our cookie policy.

If you'd like to disable cookies on this device, please view our information pages on 'How to manage cookies'. Please be aware that parts of the site will not function correctly if you disable cookies.

By closing this message, you consent to our use of cookies on this device in accordance with our cookie policy unless you have disabled them.