Item	Average distance from vendor (in miles)	Number of units used each week	Current lot size purchased	Unit cost	Average freight cost per unit
Gas range	1,145	10	200	$100	$20
Toilet	606	10	240	$80	$18
Pump	26	56	125	$16	$3
Refrigerator (large)	22	6	120	$110	$20
Refrigerator (small)	22	7	15	$95	$15
Foam cushion	490	675	1,500	$8	$2
CB radio (type D)	1,800	9	24	$136	$11
Dome lights	3	824	1,720	$2	None
Awning bracket	48	540	1,200	$4	$1
Insect screen	159	570	1,240	$7	$1

Current system (continued)

Item	Safety stock	Average inventory	Total inventory	Inventory cost	Inventory carrying charges	Inventory maintenance cost
Gas range	40	100	140	$62,400	$3,360	$65,760
Toilet	40	120	160	$50,960	$3,136	$54,096
Pump	56	63	119	$55,328	$450	$55,778
Refrigerator (large)	6	60	66	$40,560	$1,716	$42,276
Refrigerator (small)	7	8	15	$40,040	$319	$40,359
Foam cushion	1,350	750	2,100	$351,000	$4,200	$355,200
CB radio (type D)	36	12	48	$68,796	$1,411	$70,207
Dome lights	824	860	1,684	$85,696	$674	$86,370
Awning bracket	540	600	1,140	$140,400	$1,140	$141,540
Insect screen	1,140	620	1,760	$237,120	$2,816	$239,936

Using JIT

Item	JIT lot size	Unit cost	Average freight cost per unit (surface)	Inventory maintenance cost
Gas range	10	$105	$22	$66,040
Toilet	10	$100	$18	$61,360
Pump	7	$15	$4	$55,328
Refrigerator (large)	6	$113	$25	$43,056
Refrigerator (small)	1	$85	$15	$36,400
Foam cushion	75	$7	$3	$351,000
CB radio (type D)	3	$130	$26	$73,008
Dome lights	36	$4	None	$171,392
Awning bracket	60	$5	$1	$168,480
Insect screen	50	$7	$2	$266,760

In a word document answer this question;

1. Would you suggest this company continue to the inventory system as it is, or change it to a JIT system. Justify your answer with the financial impact of the decision.

To submit your answer, click on the title of the assignment and it will give you a place to submit your word document.