Time interval between ordering and receiving the order.

$$ Holding cost

$$ Purchase cost

$$ Lead time

$$ Ordering cost

$$ Setup cost

$$ Shortage cost

Cost to carry an item in inventory for a length of time, usually a year.

The amount paid to buy the inventory.

Cost of purchasing and receiving inventory.

The costs involved in preparing equipment for a job.

Costs when demand exceeds supply.

Cost of discarding unneeded$/$spoiled inventory.

Time interval between placing and order for raw materials and shipping the finished product to the customer.