Chat with us, powered by LiveChat Using JIT to minimize holding costs Cedric Pet Sup - BonPapers

Using JIT to minimize holding costs Cedric Pet Sup

Using JIT to minimize holding costs Cedric Pet Supplies purchases its inventory from a variety of suppliers, some of which require a sixweek lead time before delivering the goods. To ensure that she has a sufficient supply of goods on hand, Ms. Keiser, the owner, must maintain a large supply of inventory. The cost of this inventory averages $40,000. She usually finances the purchase of inventory and pays a 10 percent annual finance charge. Ms. Keiser’s accountant has suggested that she establish a relationship with a single large distributor who can satisfy all of her orders within a two-week time period. Given this quick turnaround time, she will be able to reduce her average inventory balance to $10,000. Ms. Keiser also believes that she could save $6,000 per year by reducing phone bills, insurance, and warehouse rental space costs associated with ordering and maintaining the larger level of inventoryRequireda. Is the new inventory system available to Ms. Keiser a pure or approximate just-in-time system?b. Based on the information provided, how much of Ms. Keiser’s inventory holding cost could be eliminated by taking the accountant’s advice?

Order an Excellent Paper with Writing Service

Bonpaper is a Custom Research Paper Writing service based in USA that is Available 24/7 to cater your needs. We have huge experience of writing essays about every possible topic. We have access to the online libraries, peer-journals, and news sites which makes it possible to gather enough data about the topic. 

We provide the plagiarism-free and grammatically perfect essay writing service to our clients. We have written hundreds of essays so far and our clients have gained excellent results as well.

Need Assignment Help?