Hello,
Please explain the question if you know.
Which changes in costs are most conducive to switching from a traditional inventory ordering system to a just-in-time (JIT) ordering system? Cost per purchase order and inventory unit carrying cost, respectively.
Correct answer: Decreasing; Increasing
My question is how the inventory unit carrying cost increases in the JIT system?
I think that the carrying cost decreases in the JIT system because inventory orders frequently and use less storage, carrying cost decreases.
Thanks