ordering cost

Ordering Costs

Transaction costs associated with placing an order to buy or sell a security. Perhaps the most common ordering cost is the fee for the broker.

ordering cost

the cost of placing an order for raw materials or components or machines, which includes management and clerical time, stationery, postage and other PURCHASING department costs. See STOCKHOLDING MODEL.
References in periodicals archive ?
Ordering cost is the cost of making requisition of raw material from the supplier.
Our model also allows for the ordering cost of the special one-time only order to be different from the retailer's regular ordering cost.
However, the LFL lot sizing method allows bundling of purchase orders for the same supplier, resulting in a lower ordering cost despite an increase in delivery frequency.
Annual ordering cost is expressed in terms of the number of orders per year (annual demand in units |not equal to~ unknown order size) multiplied by cost to place an order.
Total cost, TC, is composed of four components: total review cost, total ordering cost, total holding cost, and total penalty cost.
A lower level of total costs (prices, ordering costs, management costs, etc.
I estimate this will reduce ordering time by 75% and ordering costs by 50% and remove a lot of headaches and frustration.
There are three types of costs in the model: (1) holding costs calculated as given unit costs times end inventory, (2) stockout costs calculated as given unit costs times stockout level occurred, and (3) ordering costs which are calculated if the end inventory is below the re-order point defined at the beginning of the simulation.
What is more, all the equipment comes from one reliable, proven source, thereby enabling reduced ordering costs, simplified pre-delivery inspection, single team installation and commissioning and extensive after sales support.
Ordering costs against the firm, Mrs Justice Smith said Mr Whitehurst's evidence was so manifestly true that it put the lid on the case.
It determines the order size that minimizes the sum of your carrying and ordering costs.