Just-in-Time (JIT) Cost Analyzer

1. Current (Traditional) System Costs

Annual Demand (Units):

Annual Holding Cost per Unit:

Average Inventory Level (Units):

(e.g., EOQ/2 + Safety Stock)

Number of Orders per Year:

Cost per Order:

Unit Purchase Cost (Traditional):

2. Proposed JIT System Parameters

JIT Average Inventory Level (Units):

Ideally very low, reflecting WIP or minimal buffer.

JIT Number of Orders/Deliveries per Year:

Typically much higher due to smaller, frequent deliveries.

JIT Cost per Order/Delivery:

Should be lower due to streamlined processes, EDI, long-term supplier contracts.

Unit Purchase Cost (JIT):

May be slightly higher if bulk discounts are lost.

Other JIT Annual Costs/Savings (+/-):

E.g., supplier development, training (costs), or reduced scrap, better quality (savings).

3. Configuration & Actions

Currency: USD ($) EUR (€) GBP (£) JPY (¥) INR (₹)

JIT Cost Analysis Summary

Traditional System Costs

Annual Holding Cost: -

Annual Ordering Cost: -

Annual Purchase Cost: -

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Total Traditional Cost: -

JIT System Costs

Annual Holding Cost: -

Annual Ordering Cost: -

Annual Purchase Cost: -

Other JIT Costs/Savings: -

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Total JIT Cost: -

Net Impact of JIT

Total Potential Savings (Costs): -