Should ballenger take into account any other cost or benefit from the JIT system? if so what are the

Ballenger should take into account that even though the costs under the JIT system appear to be higher than with the current system, the ultimate goal of the system is to reduce inventory levels. Since the company is developing new varieties of components for their motorhomes, inventory levels are going to rise every day more. Knowing that he has to pay 1.5% of the amount of inventory to the public warehouse the company is using, Jim has to compare which of the two choices would be more beneficial for the company in the long run.Another benefit of the JIT system is that by having less inventory it would also help reduce others risks such as obsolescence of products and shrinkage. Also, by reducing inventory costs,the amount of money available would be higher. Such capital could be used to expand or improve the business because the current inventory costs are decreasing their profits considerably

Under a JIT system, Ballenger should exhibit less concern with various problems associated with maintaining a large inventory such as shrinkage and obsolescence.

some one gave me the same exact answer somewhere else, is this answer open to the public ?

from my course hero account