- This topic has 1 reply, 2 voices, and was last updated 11 months ago by John Moffat.
- You must be logged in to reply to this topic.
Is it true that in the JIT inventory system re-ordering costs will increase but holding costs will decrease?
Is it true that JIT is where we order the raw material from suppliers only when we need it for production (or there is any demand from customers) & turn it into finished goods only when we have a customer order or customer demand of such inventory?
First sentence – it is true that the annual reorder cost will be higher and the annual holding cost will be lower.
Second sentence is true also.