1 Ordering and inventory
To determine a supply's true costs, you need to consider how many times you order it. Calculate how often you use the product on a quarterly basis compared to how many are in a box. If you plan to purchase a box of suture with six packs in it, and you use more than a pack a day, you will be ordering it frequently. Now consider that the labor and supplies required to cut each paper purchase order can cost up to $100. More ordering means more purchase orders, not to mention the labor costs of receiving and stocking the item.