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 (10 Marks)If you knew that PAVO has many units stored in their owninventory to prepare for their operations as presented in thefollowing table:5| P a g eItem A B C D E F G H I JQuantity 1,4004,8003001207,6008,00012,000600605,800Price 150903005504020061002,40040Required:Perform the ABC analysis for PAVO Inventory (4 Marks)If 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 20 units a day. Eight units will be used dailyin assembling the final product. Assembly will take place five days a week, 50 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 300. Inventory holding costs will be LE 10 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? (1 Mark)b. What run quantity should be used to minimize total annual costs? (1 Mark)c. Calculate the Total Inventory Cost for this case. (1 Mark)d. What is the length of a production run in days? (1 Mark)e. During production, at what rate will inventory build-up?(1 Mark)f. If the manager wants to run another job between the runs of this item, and needs aminimum of 10 days per cycle for the other work, will there be enough time? (1 Mark)Q5: PAVOs Supply Chain (Theoretical Analysis)

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