Inventorying Analyzing the inventory level and inventory related activities it is observed that presently the company is maintaining stock at a high level and there is no specifically assigned person for monitoring the stock related activities resulting in huge amount of inventory and inventory carrying cost. The Competitor is following Just-In-Time (JIT) principle for inventory purchasing using EDI (Electronic Data Interchange) system for giving purchase order and for other related communications with the vendor so that it can get the desired inventory at the desired time. Suggested improvement Castle Machine Company, Inc. Can eliminate maintaining any inventory by implementing JIT system. But to implement a perfect JIT system it needs to establish a quick system of ordering and other communication like EDI system. it needs to develop a vendors' base that have got the ability to supply required quantity, with required quality, immediately after providing the order. All these has got time and cost involvement. The implementing JIT system will result the following financial impacts: 1 - the inventorying cost will be reduced to $3,000 per month from $58,944 permonth. 2- To implement the JIT system Castle Machine Company, Inc. has to invest $180,000 for electronics equipment (for EDI), which is to be depreciated in five years using straight-line method and $24,000 per year other fixed expenses. Required 4 (3 Marks) How much is the monthly net inventorying cost after implementing JIT? Required 5 (1 Mark) How much is the monthly incremental cost saving of inventorying activity after implementing JIT