The efficiency gains resulting from a just-in-time inventory management system will allow a firm to reduce its level of inventories permanently by $333,000. What is the most the firm should be willing to pay for installing the system

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06-07-2021
Business

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The efficiency gains resulting from a just-in-time inventory management system will allow a firm to reduce its level of inventories permanently by $333,000. What is the most the firm should be willing to pay for installing the system

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Jepessoaidn Jepessoaidn · Answer 1 · 2021-07-07T20:34:29-04:00

Jepessoaidn Jepessoaidn

07-07-2021

Answer:

Since the benefits of adopting a just-in-time inventory management system are $333,000, and these benefits are permanent; then we can assume that the company should be willing to pay up to $333,000 for installing the system. This amount varies depending on maintenance expenses or the costs of operating the system.

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