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As one considers the interrelationship between supplier logistics and performance of JIT assembly plants, the question arises concerning how many hours of parts inventory are appropriate. Low inventories reduce holding costs, throughput times, and (by eliminating storage) material handling costs internal to the plant. Moreover, under the lean philosophy, low inventories enable improved control over part quality and supplier performance and they maintain a healthy stress on the system necessary to motivate improvements. The dollar magnitude of these later savings is intangible but generally considered significant. On the other hand, low inventories also increase the frequency of milkrun routes and the number of suppliers on these routes, hence, increasing transportation costs.