Question

The efficiency gains resulting from a just-in-time inventory management system will allow a firm to reduce its level of inventories permanently by $444,000. What is the most the firm should be willing to pay for installing the system

Answer 1

The  most the firm should be willing to pay for installing the system is $444,000.

What is  just-in-time inventory management?

just-in-time inventory management is an inventory management system  and can be defined as the process in which companies have inventory at hand so as to have inventory to fall back to  in case the company want to urgently make use of inventory.

Hence, the most the firm should be willing to pay for installing the system is $444,000 since the company want  to reduce the level of inventories permanently by $444,000.

Learn  more about just-in-time inventory management here:brainly.com/question/8842151

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