How can I calculate "inventory carrying costs"?

Question

For example, based on these numbers, how would I calculate it?

Annual Cost of Goods Sold = $2,000,000
Average Inventory Value = $500,000
Cost of Capital = 10% of average inventory value
Cost of Storage = 8% of average inventory value

Also, this is not for a class. I have an interview and I think they will ask me about ICC. I just want to be prepared.

Answer 1

If your average inventory value is $500,000, then you just add another 18% as your inventory carrying cost. According to this article at the link, ICC is about 25% of inventory.

Answer 2

Inventory Carrying Cost Calculation Formula