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We demand a “good” plan that satisfies customers while maintaining the lowest possible total cost. Manufacturing Organization. Different inventory management The production of speakers in large batches leads to a large inventory. The estimated holding cost of keeping a speaker in stock is $0.30 per month. This cost Download Free PDF In spite Pergah Transport's effort to keep cost of inventory as low as 11 2.4.3 INVENTORY HOLDING COSTS OR WAREHOUSING COST .The inventory manager is expected to ensure right inventory at right time with right quality from a right place at right price in order to minimize the cost Average inventory cost​. An inventory valuation method that bases its figure on the average cost of items throughout an accounting period. Function of Inventory. • Types of Inventory. • Cost Associated with Inventory. • Techniques of Inventory Control (EOQ and ABC analysis). • Stock Keeping