Glossary
Ordering cost
Ordering cost is what you spend each time you order goods: calls, transport, paperwork and checking.
What it means for a shop owner
It is roughly a fixed amount per order whatever the quantity, which is why a big order is tempting. Balancing it with carrying cost gives the right quantity. Work it out once, carefully.
A worked example
Transport is 15 and calls and follow-up are 5, so an order costs 20 whatever its size.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes