Inventory Control systems Inventory control systems are procedures designed to avoid wastage of inventories due to damage, obsolescence, and misuse. Some commonly used control systems are ; ABC System, First-in, First-out (FIFO) System and Just In Time (JIT) System . The ABC System classifies inventories into categories according to its importance. The most valued inventories are classified as A and are strictly monitored and secured. Only lim- ited personnel are given access to such inventories. Stocks classified as C are of least im- portance and require lesser control and safeguarding measures, while B stocks are between As and Cs. This system focuses on the degree of importance of the inventories as the basis for control measures, thus, the more important is an item, the more safekeeping measures applied. First-in First-out (FIFO) system simply means that old stocks should be disposed or sold first to avoid spoilage or obsolescence Just In Time (JIT) system is a Japanese-created inventory management system de- signed originally for automotive manufacturing firms. This system requires that inventory replenishment will only be done when needed or "just in time" for its use. TASK 5 Caselet Analysis Peter Pan Bakery is a solely owned bakeshop with ten branches operating within the province. The owner, Butch is contemplating on digitizing the business's transactions spe- cially its inventory control system as the business continues to expand and increase its annu- al sales. The bakery purchases an average of 100,000 sets of baking materials ordered from a supplier which requires P100 per order cost. Cost of maintaining the inventory is P2.50 per set. Upon consultation with an Information Technology expert, the following information is needed for the computerized inventory system; Economic Order Quantity Total Inventory Costs Number of orders in a year Lead time usage Reorder Point The owner asked you to assist him in the computation of the needed information above. Also, he requested that you are going to prepare a one-paragraph short and brief explanation of what the computed figures (a to e) means. You may use the space provided for your an- swers. 51 Computations: Explanations: References: (https://www.investopedia.com/articles/personal-finance/120815/4-most-common- reasons-small-business-fails.asp)