{"id":6703,"date":"2022-08-25T14:22:35","date_gmt":"2022-08-25T13:22:35","guid":{"rendered":"https:\/\/www.aloer.fr\/glossary\/ordering-cost-oc-definition\/"},"modified":"2023-10-20T12:58:40","modified_gmt":"2023-10-20T10:58:40","slug":"ordering-cost-oc-definition","status":"publish","type":"glossary","link":"https:\/\/www.aloer.fr\/en\/glossary\/ordering-cost-oc-definition\/","title":{"rendered":"Ordering Cost \u2014 OC \u2014 Definition"},"content":{"rendered":"<h2 class=\"wp-block-heading\">Ordering Cost &mdash; definition<\/h2>\n\n\n\n<figure class=\"wp-block-image alignright\"><img decoding=\"async\" src=\"https:\/\/www.aloer.fr\/wp-content\/uploads\/2021\/06\/cout-de-passation-de-commande-cpc-jessie-mccall.jpg\" alt=\"Ordering Cost - OC\" class=\"wp-image-6473\"\/><\/figure>\n\n\n\n<p>Let&rsquo;s talk about the <strong>Order&shy;ing Cost &mdash; OC<\/strong> or <a href=\"https:\/\/www.aloer.fr\/glossary\/cpc-cout-de-passation-de-commande-definition\/\">co&ucirc;t de pas&shy;sa&shy;tion de com&shy;mande<\/a> in French. Indeed, the OC rep&shy;re&shy;sents a sig&shy;nif&shy;i&shy;cant&nbsp;cost.<\/p>\n\n\n\n<p>In gen&shy;er&shy;al, the OC is cal&shy;cu&shy;lat&shy;ed as fol&shy;lows: sum of fixed and vari&shy;able costs relat&shy;ed to pro&shy;cure&shy;ment \/ num&shy;ber of orders and is expressed in cur&shy;ren&shy;cy or by pro&shy;cure&shy;ment order. Anoth&shy;er defin&shy;tion tells&nbsp;us:&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><em>Used in cal&shy;cu&shy;lat&shy;ing order quan&shy;ti&shy;ties, the costs that increase as the num&shy;ber of orders placed increases.&nbsp;<\/em><\/p><cite>APICS Dic&shy;tio&shy;nary&copy;, APICS&nbsp;2008<\/cite><\/blockquote>\n\n\n\n<p>It must be tak&shy;en into account in the costs (includ&shy;ing hid&shy;den) of inven&shy;to&shy;ry management!<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Ordering Cost will take into account<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>the cost of the order process<\/strong> itself. It will include the costs asso&shy;ci&shy;at&shy;ed with issu&shy;ing an order. Not to men&shy;tion the admin&shy;is&shy;tra&shy;tive costs asso&shy;ci&shy;at&shy;ed with invoice pro&shy;cess&shy;ing and accounting.<\/li><li><strong>some&shy;times, the costs of upstream logis&shy;tics<\/strong>: trans&shy;port and recep&shy;tion (unload&shy;ing, inspec&shy;tion&hellip;). Also include the costs asso&shy;ci&shy;at&shy;ed with insurance.<\/li><\/ul>\n\n\n\n<p><strong>Note:<\/strong> <strong>low inven&shy;to&shy;ry lev&shy;els result in<\/strong><strong>low&shy;er<a href=\"https:\/\/www.aloer.fr\/en\/glossary\/inventory-holding-cost-definition\/\"> inven&shy;to&shy;ry car&shy;ry&shy;ing costs<\/a><\/strong>. On the oth&shy;er hand, it gen&shy;er&shy;ates high costs of plac&shy;ing or launch&shy;ing orders because of a more fre&shy;quent choice of replenishments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is an order placement?<\/h2>\n\n\n\n<p>The comit&shy;ment of a cus&shy;tomer to buy a prod&shy;uct and the sub&shy;se&shy;quent admin&shy;is&shy;tra&shy;tive and data pro&shy;cess&shy;ing steps fol&shy;lowed by the supplier.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Sup&shy;pli&shy;er deliv&shy;ery in accor&shy;dance with quan&shy;ti&shy;ty, qual&shy;i&shy;ty and deadlines<\/li><li>Pay&shy;ment by the cus&shy;tomer accord&shy;ing to the estab&shy;lished conditions<\/li><li>Any oth&shy;er con&shy;trac&shy;tu&shy;al oblig&shy;a&shy;tions defined beforehand.<\/li><\/ul>\n\n\n\n<p>It can take the form of an order form, phone call, email&nbsp;etc.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Hos to calculate the acquisition cost?<\/h2>\n\n\n\n<p>The acqui&shy;si&shy;tion cost required to obtain one or more units of an item It is cal&shy;cu&shy;lat&shy;ed as fol&shy;lows : order quan&shy;ti&shy;ty times unit&nbsp;cost.<\/p>\n\n\n\n<p>It is not to be mis&shy;tak&shy;en with the order&shy;ing&nbsp;cost.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Order&shy;ing Cost &mdash; def&shy;i&shy;n&shy;i&shy;tion Let&rsquo;s talk about the Order&shy;ing Cost &mdash; OC or co&ucirc;t de pas&shy;sa&shy;tion de com&shy;mande in French. Indeed, the OC rep&shy;re&shy;sents a sig&shy;nif&shy;i&shy;cant&nbsp;cost. In gen&shy;er&shy;al, the OC is cal&shy;cu&shy;lat&shy;ed as fol&shy;lows: sum of fixed and vari&shy;able costs relat&shy;ed to pro&shy;cure&shy;ment \/ num&shy;ber of orders and is expressed in cur&shy;ren&shy;cy or by procurement&nbsp;[&hellip;]<\/p>","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"wp_typography_post_enhancements_disabled":false,"footnotes":""},"class_list":["post-6703","glossary","type-glossary","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ordering Cost - definition<\/title>\n<meta name=\"description\" content=\"The ordering cost needs to be counted with inventory management costs and not to be mistaken with other similar keywords.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aloer.fr\/glossary\/cpc-cout-de-passation-de-commande-definition\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ordering Cost - definition\" \/>\n<meta property=\"og:description\" content=\"The ordering cost needs to be counted with inventory management costs and not to be mistaken with other similar keywords.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.aloer.fr\/glossary\/cpc-cout-de-passation-de-commande-definition\/\" \/>\n<meta property=\"og:site_name\" content=\"Aloer\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-20T10:58:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.aloer.fr\/wp-content\/uploads\/2021\/06\/cout-de-passation-de-commande-cpc-jessie-mccall.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.aloer.fr\\\/glossary\\\/cpc-cout-de-passation-de-commande-definition\\\/\",\"url\":\"https:\\\/\\\/www.aloer.fr\\\/glossary\\\/cpc-cout-de-passation-de-commande-definition\\\/\",\"name\":\"Ordering Cost - definition\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.aloer.fr\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.aloer.fr\\\/glossary\\\/cpc-cout-de-passation-de-commande-definition\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.aloer.fr\\\/glossary\\\/cpc-cout-de-passation-de-commande-definition\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.aloer.fr\\\/wp-content\\\/uploads\\\/2021\\\/06\\\/cout-de-passation-de-commande-cpc-jessie-mccall.jpg\",\"datePublished\":\"2022-08-25T13:22:35+00:00\",\"dateModified\":\"2023-10-20T10:58:40+00:00\",\"description\":\"The ordering cost needs to be counted with inventory management costs and not to be mistaken with other similar keywords.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.aloer.fr\\\/glossary\\\/cpc-cout-de-passation-de-commande-definition\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.aloer.fr\\\/glossary\\\/cpc-cout-de-passation-de-commande-definition\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.aloer.fr\\\/glossary\\\/cpc-cout-de-passation-de-commande-definition\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.aloer.fr\\\/wp-content\\\/uploads\\\/2021\\\/06\\\/cout-de-passation-de-commande-cpc-jessie-mccall.jpg\",\"contentUrl\":\"https:\\\/\\\/www.aloer.fr\\\/wp-content\\\/uploads\\\/2021\\\/06\\\/cout-de-passation-de-commande-cpc-jessie-mccall.jpg\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.aloer.fr\\\/glossary\\\/cpc-cout-de-passation-de-commande-definition\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Accueil\",\"item\":\"https:\\\/\\\/www.aloer.fr\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Ordering Cost &#8211; 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