2. What would be the total annual cost of maintaining the components inventory under the JIT system (assuming no safety stocks)? Item Amount under Cost per unit Freight per unit JIT system Inventory maintenance cost Gas range 10 $105 $22 $66,040 Toilet 10 $100 $18 $61,360 Pump 7 $15 $4 $55,328 Refrigerator (L) 6 $113 $25 $43,056 Refrigerator (S) 1 $85 $15 $36,400 Foam cushion 75 $7 $3 $351,000 DVD Player 3 $130 $26 $73,008 Dome Lights 36 $4 0 $171,392 Brackets 60 $5 $1 $168,480 Insect Screens 50 $7 $2 $266,760 Adding all the inventory maintenance costs of every item in the table, we get that the total annual maintenance cost under the JIT System would be $1,292,824. We got this costs for the JIT system looking at the number of items that are assumed to be used weekly, but using the new costs (per item and freight) that the table shows. As we can see, the costs under the JIT system would be higher than with the current system.