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This video discusses ordering costs. Ordering costs are all the costs associated with ordering inventory from a supplier. Ordering costs include, but are not limited to:

-time spent locating a supplier

-time spent negotiating with a supplier

-inspecting inventory for quality when it arrives

-processing purchase orders

-processing the payment

The ability to place orders online and the use of procurement cards (commonly known as “p-cards”) has significantly decreased the costs of ordering.