Superlec plc makes electrical appliances. One of its major component suppliers is Technicalities Ltd. The two businesses

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Superlec plc makes electrical appliances. One of its major component suppliers is Technicalities Ltd. The two businesses have recently established a comprehensive JIT relationship.

Would you expect that the inventories of Technicalities Ltd to:

  • Increase,
  • Reduce, or
  • Stay the same

as a result of the change of relationship?

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