Shortage cost

Shortage Cost calculation = costs related to urgent deliveries + lost sales + penalties + accesories purchased at an higher price + higher administrative costs

It is part of the procurement activity ratios.

It measures the total cost of a shortage situation.

→ Procurement dashboard

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Total Cost of Supply

Total Cost of Supply calculation = acquisition costs + Inventory Holding Costs + Purchase costs

It is part of the procurement activity ratios.

It measures the total cost of supplying goods to inventory.

→ Procurement dashboard

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Acquisition cost

Acquisition Cost calculation = costs related to the preparation, launching and orders follow-up + logistics costs necessary to acquire the inventory

It is part of the procurement activity ratios. It is also called Inventory Carrying Cost -ICC

It measures the total cost of acquiring goods in inventory.

→ Procurement dashboard

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