Question: Item Code Annual Demand Units Cost , Unit/Rs A1 300 50 A2 4000 12 A3 1500 70 A4 6000 30 A5 1000 20 A6 500
| Item Code | Annual Demand Units | Cost , Unit/Rs |
| A1 | 300 | 50 |
| A2 | 4000 | 12 |
| A3 | 1500 | 70 |
| A4 | 6000 | 30 |
| A5 | 1000 | 20 |
| A6 | 500 | 50 |
| A7 | 300 | 1500 |
IndustrialMotors C_(0) keops nearly 6000 items in its central store. The annual demand and unit cost of the items (only 7 items are included here) stored in the stores are given in the table below. [7] Item Code Annual demand (units) Cost/unit Rs A1 300 50 A2 4000 12 A3 1500 70 A4 6000 30 AS 1000 20 A6 500 50 A7 300 1500 a) Develop a system to control IndustrialMotorsCo's inventory. (Show/explain every calculation, draw graphs, etc). b) What is Cycle inventory? What are the different costs that affect cycle inventory.
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