Your company recently changed suppliers to reduce the lead time to 8 days. The g

Question

Your company recently changed suppliers to reduce the lead time to 8 days. The goal of this change is to improve the CSL while maintaining the current safety stock of 100 units. Your company uses a continuous review system. The daily demand is 25 units. If your current inventory position is 250 units, how much should you order? 0 50 100 150 200 300 400 The EOQ amount Which of the following is NOT a common concern for suppliers who have a JIT partnership? Long-term contracts of JIT partnerships can limit flexibility. Decreased utilization and capacity as a result of reducing setup times. Reduced order sizes often prevent benefits from economies of scale. Need for excess finished goods inventory. Strict quality assurance.

Explanation / Answer

option D is right answer.

JIT system does not encourages excess finished goods inventory

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