Exercise Scenario: over 6-day from the time it leaves the RDC at 30-percent annual carrying cost. The cost of placing the product on the shelf is covered in the shipping cost. Total Landed Cost - Exercise Scenario Key Formulas Full Lot = Quantity Time Full Lot Per Unit Cost = (Value of Product x Annual Inventory Carrying Cost \% x Days in Inventory) /365 Gradual Depletion = (Quantity Time) /2 Gradual Depletion per Unit Cost = (Value of the Product Annual Inventory Carrying Cost \% x Days in Inventory) / ( 3652)