Pieces and Parts, Inc., is a major supplier of components used by Game Guys, Inc.. Game Guys is looking to implement a just-in-time inventory system. Pieces and Parts should benefit from this approach, since JIT systems greatly simplify the task of suppliers.

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In just-in-time systems, suppliers deliver only the amount needed to meet production requirements. Thus, Pieces and Parts will be required to coordinate its shipments with the production needs of Game Guys. This will mean it must make smaller and much more frequent shipments, thus increasing its costs.