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?
Definitions:
Abnormal Behavior
Actions, thoughts, or feelings that are considered outside the statistical norm or that deviate significantly from societal expectations and can affect functionality.
Social Relationships
Connections or associations between two or more individuals, based on social context, which affects their interactions and behavior.
Systems Approach
A perspective in understanding complex problems or situations by examining the interactions and relationships among the parts that compose the entirety of the system.
Biopsychosocial Model
A model of health that integrates the biological, psychological, and social factors all playing a role in human functioning.
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