Changing the carrying cost percentage

Reference no: EM133471958

Question: Is there a level of carrying costs at which the present system and JIT would have similar costs?

If so what is it? How did you figure that out? Hint try using the excel sheet and changing the carrying cost percentage. In other words if you have to change carrying cost from 10% to 15% in order for the present system's total cost to equal JIT total costs then the answer would be "carrying costs would need to increase by 50% from 10 to 15 in order for the two systems to have equal costs"

Reference no: EM133471958

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