Which two of the following costs are likely to rise when just in time (JIT) manufacturing is introduced?

Set-up costs
Raw material handling costs

The correct answers are: Set up costs. Raw material handling costs. These two costs are likely to increase, as batch sizes get smaller. Remember, the whole aim of JIT is to hold no inventory. Thus raw material storage costs should fall, not rise. Customer order costs will not be changed by the introduction of JIT.