for example suppose the annual carrying cost is 25% อฟพรฟิสำ ยพนกีแะรนื แนหะ ฟืก ะ้ำ อฟพรฟิสำ แนหะ นด ฟอำพฟเำ ไรย รห $200,000. management plans to use jit to double the velocity of wip without changing total annual output. this will be achieved by cutting average batch size in half. no change is planned in materials or finished goods inventory. average wip will be reduced by half producing a saving of $25,000 (25% * 1/2 * $200,000) in annual carrying costs.