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olasank [31]
4 years ago
13

The efficiency gains resulting from a just-in-time inventory management system will allow a firm to reduce its level of inventor

ies permanently by $473,000. What is the most the firm should be willing to pay for installing the system
Business
1 answer:
abruzzese [7]4 years ago
8 0

Answer:

$473,000

Explanation:

Since the company can gain up to $473,000 by adopting a just in time (JIT) inventory management system, then that is the maximum amount of money that it should be willing to to spend on adopting and installing the system. It wouldn't make sense to spend more, and the less they spend the better. But the question refers to the maximum amount they should pay and that equals the total possible savings.

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