Copyright?2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin5-*CHAPTER5FinancialImpactofInventoryCopyright?2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin5-*SelectedFinancialDataforManufacturers,Wholesalers,andRetailersfor1997($Millions)Note:Endinginventoryfiguresareusedforinventoryinvestment.Allfiguresarefor1997.Copyright?2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin5-*CostTrade-offsinMarketingandLogisticsProductOrderprocessingandinformationcostsInventorycarryingcostsPlace/customerservicelevelsOrderprocessingandinformationcostsPriceLotquantitycostsWarehousingcostsTransportationcostsLOGISTICSMARKETINGFigure1-3Copyright?2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin5-*ComponentsofInventoryCarryingCostsCapitalInventoryser