Post Utme Crawford University 2022 Commerce Question 3
Practice objective / multiple choice question 3 from the 2022 Post Utme Crawford University Commerce examination.
A company is considering implementing a just-in-time (JIT) inventory system. The company currently holds an average inventory level of ₦1,000,000. The JIT system would reduce inventory levels to ₦500,000, but would also result in a 5% increase in ordering costs. What is the net effect of implementing the JIT system on the company's inventory costs?
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About This Question
This is Post Utme Crawford University 2022 Commerce Question 3. It is one of the objective questions from the 2022 Post Utme Crawford University Commerce examination.
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