To implement JIT,the manager at Seaton Hammock Manufacturing must incur $110,000 in annual production costs to reduce setup times.The manager expects JIT to reduce average inventory by $450,000 and relevant costs of insurance,storage,materials handling,and setup by $35,000 each year.The required rate of return on inventory investments is 10% per year.The manager was thinking about enhancing the quality of rework and warranty repair costs.What are the savings? Does the manager have enough information to implement the system?

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The Answer of To implement JIT,the manager at Seaton Hammock Manufacturing must incur $110,000 in annual production costs to reduce setup times.The manager expects JIT to reduce average inventory by $450,000 and relevant costs of insurance,storage,materials handling,and setup by $35,000 each year.The required rate of return on inventory investments is 10% per year.The manager was thinking about enhancing the quality of rework and warranty repair costs.What are the savings? Does the manager have enough information to implement the system?

To Implement JIT,the Manager at Seaton Hammock Manufacturing Must Incur