Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need explanation on all Illustrations thers. The soft powered Cesto modo de receipt facilities of a Capted of oft 6.6. copa The Capital Cost will
need explanation on all
Illustrations thers. The soft powered Cesto modo de receipt facilities of a Capted of oft 6.6. copa The Capital Cost will be deprecated coverans Sy wil bewed tom.62.000 60.000 rendre en storage tits mounting to 30.000 per annum. Property Taxes and ning 12,000 will be saved due to IT program here we 7 modes is the Stores Department at a Salary of 3.000 each per month. After implementing JT See on es de gured in this Department of the balance 5 workers, I will be transferred to other destens while we employment will be terminated. Doe door el der lets of Raw Materials, there will be some disruption of production. The costs of Stock-Out is 3,00,000 ce the fact of the policy, is Radvisable for the Company to implement JIT system? ution Cast Benefit Analysis of IT policy Costs Benefits sest on Call for modifying production Interest on Investment on released funds de 600.000 1596) 90.000 R 28,00,000 -- 28,00,000) * 15% Operating costs of new production facilities 48,000 Savings in Salary of 2 workers terminated preciation of new production facilities NG 3,000 x 12 months x 2) Scout Costs (given) 66,000 Savings in Rental Expenditure e Bandit due to JIT policy 210,000 Savings in Property Tax & Insurance Total 4,14,000 Total 72.000 30,000 12.000 4,14,000 eclusion: The JIT policy may be implemented, as there is a Net Benefit of 2.10,000 per annum. te: Depreciation, being apportionment of Capital Cost, is ignored in decision-making. Tax Savings on Depreciation is not considered in the above analysis Curent Purchase Policy vs JIT Purchasing N05 Video Company sells package of blank video tapes to its customers. It purchases video tapes from Y Tape Company at 140 per packet. Y Tape Company pays all freight to X Video Company. No incoming inspection is necessary because Y Tape company has a superb reputation for delivery of quality merchandise. Annual demand of X Video Company is 13,000 ckages. X Video Company requires 15% annual return on its investment. The Purchase Order Lead Time is 2 weeks. The chase Order is passed through internet and it costsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started