Question 1: (34 Marks) Read the extract below and answer the questions that follow: Inventory comprises a combination of raw materials, work-in-progress and finished products. Effective inventory management is essential to ensure optimal stock levels and maximising the earning potential of the business. Inventory is typically found in manufacturing businesses, while stock is associated with trading (wholesale or retail) businesses. Inventory comprises three (3) parts. Below is a diagram that illustrates this: The start and end point of the supply chain. The three (3) parts of the inventory process within the supply chain. The flow (direction) of each part within the supply chain. Raw Work in Finished Materials Progress goods Meyer, A. Schutte, P. Wheeler, B. Kufandarerwa, R. Makiwa, P. Cawthra, T. Ruziwa, R. RourkeMcGill. Nokhepheyi, Y. Zandberg, E. 2020. Principles of Stock Control and Inventory Management. First Edition. Westlake Business Park, Cape Town: Edge Learning Media. Required: 1.1 Using your own words, differentiate between the following parts of inventory in the supply chain: (9 marks) Raw materials (4 marks) Finished goods (5 marks) Read the hypothetical scenario below and answer the question that follows. Lava Fires Lava Fires is a specialist designer and retailer of fireplaces, braais, boiler pellets and bio-pellets. Their product range consists of the best designs in steel and stainless steel products. Lava Fires prides itself in its ability to deliver products of high quality, good design, energy efficient and user-friendly braais. The company invests a great deal of time and capital into product research and development. Lava Fires is also open to new and innovative ideas, by building a custom-made braai, for each client's individual preference and requirements. Unfortunately, due to the recent outbreak of the Covid-19 (coronavirus) variant, Lava Fires has been experiencing a shortage in steel and stainless steel from their supplier based in Chang-Hai, China. As a result, Lava Fires can only build custom-made braais based on prerequisite developments which range between 800mm | 1000mm | 1200mm or 1500mm. Lava Fires must, consequently, amend their current stock to fulfil customers needs and requirements. Lava Fires is the first in South Africa and Southern Hemisphere to have designed an efficient freestanding and built-in gravity feed pellet fireplace and braai. *Hypothetical scenario. Required: 1.2 Using the information provided in Q.1.1, and the scenario provided in Q.1.2 above, you are required to identify the Raw materials, Work in progress and Finished goods of Lava Fires. (6 marks) 1.3 Summarise the differences between how merchants in the early 18th century managed stock and inventory compared to current stock and inventory management practices. (19 marks) - 18th century stock and inventory management practices. (7 marks) - Current Stock Control and inventory management practices. (12 marks)