Wilks, Inc. manufactures small kitchen appliances with low production levels. It

The stock book approach was working for Wilks since it had low production levels and was able to store materials and parts in a small warehouse. With the expansion into larger appliances, Wilks no longer has the warehouse space for the parts and materials needed to produce the large appliances. Wilks could investigate the costs of expanding its warehouse, but a better option would be to implement a JIT system. A JIT system would allow Wilks to order materials as they are needed, eliminating the need for a larger warehouse and thus saving costs associated with storage.

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