It is possible to go further though, in particular when focusing on the carrying costs. For instance, the items in your inventory probably won’t have the same carrying costs (even within the same warehouse or the same category). Differences appear due to sales volumes, rotations, varying bulkiness of items, etc. Determining more finely the carrying costs of the items within your inventory can help you focus on the most relevant ones, discard the ones giving off less profit and so on. We broach here the subject of inventory categorization, and methods such as the ABC analysis. For more details, see our article.