A manufacturing company, 'Aura Co.', uses 1,000,000 units of a raw material, 'Component X', annually. The cost to place an order is $1,000, and the holding cost per unit per year is $1.00. The company currently orders in batches of 100,000 units. The supplier of 'Component X' has offered Aura Co. a 3% bulk purchase discount on the raw material's purchase price, which is currently $5.00 per unit. To avail of the discount, Aura Co. must increase its order size to 250,000 units per order. The new holding cost per unit per year is estimated to increase to $1.20 due to increased warehousing and insurance costs. Which of the following is the most financially sound decision for Aura Co. to take?

'Nexus Corp.' has adopted a Just-in-Time (JIT) procurement policy. The company's annual purchases are $120 million, and its annual holding costs (excluding financing costs) for raw materials are estimated at $2 million. Under the previous ordering policy, the average raw material inventory was held for 45 days. With the new JIT policy, the average raw material inventory is expected to be maintained at a minimum level equivalent to 5 days of usage, and the number of orders placed annually will increase from 8 to 50. Nexus Corp. finances its working capital with an overdraft facility at an annual interest rate of 8%. Assume a 365-day year. How will the implementation of the JIT policy affect Nexus Corp.'s working capital financing costs and liquidity?