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Category > Business & Finance Posted 05 Aug 2017 My Price 7.00

For NEO: JIT manufacturing and cost savings. Bogden

For NEO: JIT manufacturing and cost savings. Bogden Company introduced JIT manufactuing last year nad has prepared the following data to assess the benefits from the change:

Category Before the Change After the Change

Production Cycle Time 68 days 30 days

Inventories $160,000 $40,000

Total Sales $1,260,000 $1,700,000

Costs as percent of sales:

Direct Materials 30% 20%

Direct Labor 22% 15%

Variable Support 28% 10%

Fixed Support 12% 5%

 

Inventory financing costs are 15% per year. Estimate the total financial benefits that resulted from the switch to JIT manufacturing operations

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Status NEW Posted 05 Aug 2017 06:08 PM My Price 7.00

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