Hudson,Inc

Multiple Choice

Hudson,Inc. ,is considering a change from a traditional purchasing system to a just-in-time purchasing system.What has probably happened to Hudson's cost per purchase order and inventory unit storage cost to prompt the company to consider such a change?

A) Purchase-order cost is increasing and unit storage cost is increasing.
B) Purchase-order cost is increasing and unit storage cost is decreasing.
C) Purchase-order cost is decreasing and unit storage cost is increasing.
D) Purchase-order cost is decreasing and unit storage cost is decreasing.
E) Both of these costs are relatively stable in amount.