Inventory holding cost comprises of the following, which is the biggest one? 1 Rent 2 Mat Handling 3 Labor cost 4)Cost of capital 5) Scrap cost

COST OF CAPITAL comprises the biggest part in inventory management

Break up of holding cost 

Housing cost ( Rent ) - 6%

Material handling cost - 3%

Labor cost - 3%

Inventory investment cost ( cost of capital) - 11%

Pilferage / scrap and obsolescence - 3%

Total                                         -26%