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 50 units per order (18,000/360). Given the standing order, ordering costs
would shrink to just $100/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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