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	INVENTORY COST ANALYSIS
	Total Cost of Inventory = Purchasing + Ordering + Holding + Shortage Costs
	SKU ID	Product Name	ABC Class	Annual Purchase Cost ($)	Annual Ordering Cost ($)	Annual Holding Cost ($)	Safety Stock Cost ($)	Stockout Risk Cost ($)	Total Inventory Cost ($)	Cost per Unit ($)
	SKU-001	Titanium Bolt M8x50	C	$112,500	$993	$994	$118	$225	$114,830	$2.55
	SKU-002	Hydraulic Cylinder HC-200	A	$540,000	$2,160	$2,194	$2,984	$1	$547,338	$456.11
	SKU-003	Ball Bearing 6205-2RS	A	$216,000	$1,376	$1,377	$796	$9	$219,558	$12.20
	SKU-004	Electric Motor 5HP	A	$534,000	$2,160	$2,169	$4,859	$0	$543,189	$905.32
	SKU-005	Steel Plate 4x8 1/4in	A	$630,000	$2,351	$2,352	$3,475	$2	$638,179	$182.34
	SKU-006	PLC Controller S7-1500	A	$330,000	$1,688	$1,716	$4,290	$0	$337,694	$2,251.29
	SKU-007	Welding Wire ER70S-6	A	$280,000	$1,565	$1,570	$539	$4	$283,678	$35.46
	SKU-008	Pneumatic Valve 1/2in	A	$357,500	$1,768	$1,775	$1,331	$3	$362,376	$65.89
	SKU-009	Servo Drive ACS580	C	$280,000	$1,440	$1,706	$2,730	$0	$285,877	$3,573.46
	SKU-010	Rubber O-Ring Kit	B	$200,000	$1,324	$1,325	$270	$63	$202,982	$8.12
	SKU-011	Conveyor Belt 24in	C	$128,000	$1,059	$1,061	$562	$2	$130,683	$326.71
	SKU-012	Stainless Pipe 2in Sch40	A	$399,000	$1,862	$1,880	$1,482	$2	$404,226	$96.24
	SKU-013	Industrial Gearbox RV-40	A	$360,000	$1,636	$1,931	$4,212	$0	$367,779	$1,838.89
	SKU-014	Safety Gloves (pair)	B	$162,000	$1,192	$1,193	$218	$90	$164,693	$4.57
	SKU-015	Lubricant ISO VG 68 (20L)	B	$132,000	$1,075	$1,078	$354	$6	$134,512	$56.05
	SKU-016	CNC Spindle Motor 15kW	A	$240,000	$1,125	$1,872	$4,680	$0	$247,677	$4,953.54
	SKU-017	Cable Tray 12x4 (10ft)	B	$182,000	$1,263	$1,264	$475	$16	$185,019	$28.46
	SKU-018	Thermal Sensor PT100	C	$126,000	$1,051	$1,052	$385	$15	$128,503	$42.83
	SKU-019	Air Filter Element AF-250	C	$216,000	$1,376	$1,378	$439	$60	$219,252	$18.27
	SKU-020	VFD Drive 10HP	B	$180,000	$1,200	$1,316	$1,170	$0	$183,687	$1,530.72
	TOTALS			$5,605,000	$29,664	$31,202	$35,368	$498	$5,701,732	$33.17
	COST BREAKDOWN BY ABC CLASS
	Class	Purchase Cost ($)	Ordering Cost ($)	Holding Cost ($)	Safety Stock Cost ($)	Total Cost ($)	% of Total
	A - Critical	$3,886,500	$17,691	$18,835	$28,647	$3,951,674	69.3%
	B - Important	$856,000	$6,054	$6,176	$2,487	$870,718	15.3%
	C - Standard	$862,500	$5,919	$6,191	$4,233	$878,843	15.4%
	Total	$5,605,000	$29,664	$31,202	$35,368	$5,701,234	100.0%
	INVENTORY EFFICIENCY METRICS
	Metric	Value	Benchmark	Description
	Inventory Turnover Ratio	30.9x	6.0-12.0x	Annual COGS / Average Inventory Value
	Days of Inventory Outstanding	8.2	21-42 days	Working days / Turnover ratio
	Carrying Cost as % of Inventory	19.5%	15-25%	Total holding cost rate
	Ordering Cost / Total Cost	0.5%	2-5%	Annual ordering / Total inventory cost
	Weighted Avg Fill Rate	95.8%	>95%	Weighted average by ABC class
	Note: Stockout risk cost estimated as (1 - service level) × demand × stockout cost / 1000.