Question: After completing the preliminary analysis, another option is considered: a Just In Time ( JIT ) Inventory System. Here, if Seaton can plan ahead and
After completing the preliminary analysis, another option is considered: a Just In Time JIT Inventory
System. Here, if Seaton can plan ahead and estimate its need for the upcoming year, the supplier can
ship units on a daily basis thus eliminating the accumulation of inventory. If Seaton adopts JIT, the
order quantity would be only units per order Given the standing order, ordering costs
would shrink to just $order and holding costs would be eliminated. With JIT, Seaton will pay cash
upfront for all orders, but is offered no discount
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