This video discusses carrying costs of inventory.
Carrying costs are all the costs associated with holding inventory. Ordering costs include, but are not limited to:
-rent for a storage facility
-security (e.g., the wages of a security guard)
-shrinkage (e.g., the inventory becoming damaged, spoiled, stolen)
-foregone interest on working capital tied up in the inventory
The Just-in Time inventory system minimizes these costs by having the company carry little to no inventory.