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EleoNora
6 days ago
8

If a just-in-time purchasing policy is successful in reducing the total inventory costs of a manufacturing company, which of the

following combinations of cost changes would be most likely to occur?
Business
1 answer:
harina [3.5K]6 days ago
4 0

Answer:

Costs associated with stockouts increase

While carrying costs decline

Explanation:

The implementation of just-in-time (JIT) leads to a reduction in overall inventory levels and an increase in the frequency of deliveries from suppliers.

With the company retaining fewer materials and components, there is a greater likelihood of experiencing stockouts, which results in escalated stockout costs.

As the overall inventory decreases, it follows that carrying costs will correspondingly diminish.

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10 days ago
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