To Implement JIT,the Manager at Seaton Hammock Manufacturing Must Incur

question 18

Essay

To implement JIT,the manager at Seaton Hammock Manufacturing must incur $110,000 in annual production costs to reduce setup times.The manager expects JIT to reduce average inventory by $450,000 and relevant costs of insurance,storage,materials handling,and setup by $35,000 each year.The required rate of return on inventory investments is 10% per year.The manager was thinking about enhancing the quality of rework and warranty repair costs.What are the savings? Does the manager have enough information to implement the system?

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Definitions:

Online Versus Retail

A comparison between shopping through online platforms versus purchasing in physical retail stores, considering factors like convenience, price, and product selection.

Build Customer Relationships

Develop and nurture long-term interactions and connections with customers, focusing on loyalty and mutual value.

Customer Relationship Management

A strategy for managing a company's relationships and interactions with existing and potential customers.

Store Information

Store Information involves the collection, storage, and management of data related to the operations, inventory, and customer interactions of a retail or online store.