When suppliers are encouraged to locate near manufacturing plants, the goal of the JIT partnership is to reduce in-transit inventory.
Are goods in transit included in the inventory?
Items from an inventory that have been delivered by the seller but have not yet been received by the buyer are referred to as "Goods in Transit" (also known as "Transit inventory"). The valuation of a company's inventory includes transit inventory heavily.
How do you calculate inventory in transit?
Utilizing the formula cost of inventory x cost of storage / 365 x number of days in travel, the cost of inventory that is in transit is determined. This will aid in figuring out the storage expenses for inventory that you own but has not yet physically arrived.
Learn more about inventory in transit: https://brainly.com/question/6964239
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