Elimination of inventories though a JIT system is believed to result in a number of different types of cost saving. Itemize the types of saving from a

Manufacturing processes are increasingly being based on the receipt of row materials from suppliers” just-in- time “for their used on the plant floor. When firm’s row materials can be handled in this immediate use mode, traditional storeroom receipt, storage, and issuance procedure are abbreviated. Storage, except for brief periods directly on the plant floor, is eliminated. Receipt and issuing documentation can be combined. As result, there is a saving in paperwork and, more importantly, a saving in inventory investment, storage, and handling costs.