Question: PAVOs Inventory Management ( 1 0 Marks ) If you knew that PAVO has many units stored in their owninventory to prepare for their operations
PAVOs Inventory Management MarksIf you knew that PAVO has many units stored in their owninventory to prepare for their operations as presented in thefollowing table: P a g eItem A B C D E F G H I JQuantity Price Required:Perform the ABC analysis for PAVO Inventory MarksIf PAVO is about to begin production of a new product in addition to their sleeves. Themanager of the department that will produce one of the components for the product wantsto know how often the machine used to produce the item will be available for other work.The machine will produce the item at a rate of units a day. Eight units will be used dailyin assembling the final product. Assembly will take place five days a week, weeks ayear. The manager estimates that it will take almost a full day to get the machine readyfor a production run, at a cost of LE Inventory holding costs will be LE a year.As a production manager of PAVO:a Which inventory model should be used here: the basic EOQ, the EPQ, or the singleperiod model? How do you know? Markb What run quantity should be used to minimize total annual costs? Markc Calculate the Total Inventory Cost for this case. Markd What is the length of a production run in days? Marke During production, at what rate will inventory buildup Markf If the manager wants to run another job between the runs of this item, and needs aminimum of days per cycle for the other work, will there be enough time? MarkQ: PAVOs Supply Chain Theoretical Analysis
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