# Carrying charge

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Related to Holding cost: Ordering Cost, Shortage cost

## Carrying charge

The fee a broker charges for carrying securities on credit, such as on a margin account. Also, any component of a futures basis, such as storage costs, interest charges or insurance costs on the underlying interest.

## Carrying Charge

1. The cost of storing a commodity over a period of time. It includes incidental costs, insurance coverage, and the physical cost of storage. It does not include depreciation, if any. The carrying charge is incorporated to the price of a commodity on the futures market.

2. In interest rate futures, the difference between the cost of purchasing an instrument and its yield. See also: Profit, Loss.

3. Fees a firm charges for making a loan. The largest single carrying charge is the interest, but it also includes charges such as an origination fee or an application fee. See also: All-in cost.
References in periodicals archive ?
Management anticipated that the investment required to increase the flexibility of the equipment would be offset by the resulting reduction in inventory holding costs.
When the buyer's holding cost is fixed and the vendor's holding cost is increasing, the value of buyer's order multiple under coordination is decreasing.
Table 1: Numerical Examples and Solutions Data set: Number of periods = 12, Demand rate = {69, 29, 36, 61, 61, 26, 34, 67, 45, 67, 79, 56} units/period, Production rate = 280 units/period, Unit production cost per period = constant, Unit holding cost per period = generated from the uniform distribution (0, 10], Setup cost to unit holding cost ratio = 10, and Number of replications = 20.
Since the stage is entered one unit short, two units must be carried into stage three, requiting a holding cost of US\$2.
where TACpB is the total annual cost with the price break with units of \$/year, CPB is the unit cost with the price break, QPB is the minimum order quantity needed to acquire the price break, and IPB is the holding cost with the high shrinkage value.
n-1, Hence the holding cost needs to be computed during these time periods.
Traditionally, obsolescence costs were treated as a component of the holding costs in the economic order quantity (EOQ) model (Hadley & Whitin, 1963; Naddor, 1966; Silver & Peterson, 1985).
p] = finished goods inventory holding cost for supplier (\$/unit/time unit) at the plant level;
The aim is finding planned lead time for each component and periodicity (P) for minimizing the sum of the holding costs for the components and backordering cost, lost sale cost, and holding cost for the finished product.
Cost consists of three components: total setup cost (TSC), total holding cost (THC), and total cost of changing MPS (TCC).
I am appealing to the Abu Sayyaf who are still holding cost guard men SN2 Gringo Villaruz and SN1 Rod Pagaling to release them for humanitarian reason, their respective family needs them, " Rep Loong said.
TWO warnings for holding cost Northallerton heavyweight Elliott Crow (Wellington) dear as he bowed out of the national Senior Novice Championships in a 5-1 Class A semi-final defeat to Coventry's Nigel Burton at Everton Park Sports Centre on Merseyside.

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