Costs of ordering can be regarded as the costs related to ordering inventory like costs of set up and costs of order. Costs of order consist of the costs of an order being received (for instance, the person’s wages by whom orders are taken via telephone); verifying availability of inventory; invoices preparation; credit check conduction; getting the orders inside the system; and payment receivable but aren’t restricted to this. Costs of ordering can be regarded as the costs related to the ordering inventory. Cost of inbound logistics and procurement develop a portion of ordering cost. The cost of ordering varies and is reliant on 2 factors – ordering cost too less and ordering cost excess. The movement of these factors is in opposite ways to one another. Ordering quantity in excess will lead to inventory’s carrying cost. On the other hand, ordering costs and cost of replenishment will get increased with less ordering. The trade-off which is present between costs of ordering and costs of carrying is that they react in opposite direction to orders’ size or number. This indicates that lower costs of carrying and higher costs of order are caused due to an increase in the orders’ number. Inventory cost of