Such equipment includes, but is not limited to: Articulating cranes (such as knuckle-boom cranes); crawler cranes; floating cranes; cranes on barges; locomotive cranes; mobile cranes (such as wheel-mounted, rough-terrain, all-terrain, commercial truck-mounted, and boom truck cranes); multi-purpose machines when configured to hoist and lower (by ...
Opportunity Cost of Holding Money The opportunity cost of holding money is the interest forgone on the next best alternative asset.
Annual holding cost = average inventory level x holding cost per unit per year. = order quantity/2 x holding cost per unit per year. 2. Setup or ordering costs: cost involved in placing an order or setting up the equipment to make the product. Annual ordering cost = no. of orders placed in a year x cost per order.