Nelson operates 300 days per year. In the past, demand for its product has been fairly steady

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Nelson operates 300 days per year. In the past, demand for its product has been fairly steady at 50 units per day. Recently however, customer orders have been inconsistent, ranging from 25 to 150 units per day. It costs Nelson $0.50 per day to store one unit in inventory while its facility-sustaining warehousing costs are $50,000 per year. Should Nelson adopt a just-in-time inventory system? Why?

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Introduction To AccountingAn Integrated Approach

ISBN: 9781119600107

8th Edition

Authors: Penne Ainsworth, Dan Deines

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