Objective: To grasp essential concepts in inventory management.Instructions:$1.$ Answer the following questions, providing concise yet comprehensive responses$\mathrm{.}2.$ Support your answers with relevant examples or scenarios to demonstrate practicalunderstanding$\mathrm{.}3.$ Submit your assignment by the specified deadline.Questions:$1.$ What is re$-$order point?$$ Briefly explain the concept of re$-$order point in the context of inventory management.$$ Provide an example illustrating how a re$-$order point is determined and its significance$\mathrm{.}2.$ What is maximum inventory?$$ Describe the concept of maximum inventory and its importance in inventory control.$$ Discuss potential challenges associated with maintaining maximum inventory levels andpropose strategies to address them.Grading Criteria:$$ Clarity and precision in answering each question.$$ Application of concepts through relevant examples or scenarios.$$ Demonstration of understanding the practical implications of the formulas discussed.$$ Adherence to the submission deadline.Note to Students: Ensure your responses are concise yet informative. Use practical examples toenhance your understanding of the concepts. This assignment is designed to assess your grasp offundamental inventory management principles.