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Lunna [17]
2 years ago
15

Q 6.3: Hanson Technology is a computer manufacturer. For years, Hanson has relied on the JIT inventory method. However, due to n

umerous recent stockouts by Hanson’s suppliers, Hanson’s management has decided to transition to the traditional inventory method. How will Hanson’s inventory levels change as a result of this switch?
Business
1 answer:
Taya2010 [7]2 years ago
6 0

Answer:

The answer is: Their inventory levels will increase

Explanation:

When companies use the Just in Time (JIT) they reduce their ordinary inventory to a minimum level, without any safety stock and that help them lower costs and improve their efficiency.

Since Hanson is changing from the JIT inventory system to a more traditional inventory system, their inventory levels should increase to include certain safety stock levels.

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