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Unformatted text preview: If your company implemented a JIT inventory system, what would the effects likely be on the company's carrying costs, shortage costs, and operating cycle? Carrying costs – Because the inventory is reduced or eliminated, the carrying costs would be dramatically lowered. Shortage costs – Expenses can expect to increase when the suppliers pass on their shortage costs to my company. Operating cycle – Assuming that all other factors stay the same, the reduced time a product stays in inventory will reduce the operating cycle....
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This note was uploaded on 04/03/2012 for the course FIN 631 taught by Professor Leland during the Spring '12 term at Chadron State College.
- Spring '12