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hello sir.
What is customer order cost? Some software costs or what?
Raw materials handling cost ? what is it?Its written that with introduction of JIT system Materials handling costs are going to increase. But I dont understand what is it…
Thanks sir.
Customer order costs are the costs of dealing with orders.
Raw material handling costs are the costs of dealing with the materials when they arrive in our building.With JIT there will be a lot more orders (of smaller amounts) and therefore more work (and therefore more costs) of dealing with the receipts of materials into the building.
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