JUST-IN-TIME IN KALAMAZOO Question 1: What is the total annual cost of maintaining the components inventory under the present system? Question 2: What would be the total annual cost of maintaining the components inventory under the JIT system (assuming no safety stocks)? Question 3: Should Ballenger take into account any other costs or benefits from the JIT system? If so, what are they? Question 4: If the JIT system is adopted, are there safety stocks of any item that should be maintained? If so, which ones, and how much? Question 5: If the JIT system is adopted, what changes, if any, should occur in the relationships between Ballenger’s firm and his suppliers of components? Discuss. Question 6: Assume that Ballenger has switched to the JIT system and that he receives a surprise phone call from a competitor who is going out of business. The competitor wants to sell Ballenger 7,000 dome lights of the type listed on Exhibit 3-c. Should Ballenger buy them? If so, at what price? Question 7: Carrying costs are 20/%. Is there a level of carrying costs at which both Ballenger’s present system and a JIT system have similar costs? If so, what is it?