Sir,
According to your notes JIT will have lower holding cost. What will be effect on reorder cost increase or decrease ??
Thanks
Ask the Tutor ACCA FM
Just in time system
9y ago#1The total reorder cost per year is likely to increase because more orders will be required.
(Lower holding cost is just one small benefit of JIT - the main benefits are less wastage; less obsolescence; etc etc.)
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