The Controller for Warner Mfg

question 42

Essay

The controller for Warner Mfg. is trying to implement some of the characteristics of a just-in-time (JIT) inventory system. She has accumulated data on Warner's present inventory system and obtained some projections and estimates of what the results of a JIT system would be. The inventory holding cost is $0.75 per unit, per month. Warner currently purchases 120,000 units every four months. Under a JIT system Warner would purchase 30,000 units every month. The monthly inventory schedule and the controller's estimate for a JIT system are provided below: (Assume the above trend continues throughout the year.)
Required: Which system should Warner use, and why?

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Definitions:

Jung's Psychological Types

a theory by Carl Jung that suggests individuals can be categorized into several psychological types based on their preferences in gathering information and making decisions.

Myers-Briggs Type Indicator

A personality assessment tool that categorizes individuals into 16 personality types based on preferences in perception and decision-making.

Neuroticism

A characteristic of personality identified by feelings of emotional unpredictability, worry, fluctuating moods, quick temper, and melancholy.

Self-Concept

An individual’s perception of themselves, encompassing self-awareness, self-esteem, and the personal identity they recognize as their own.