Question: QUESTION 5 A). What are inventories? Why are they important to manufacturing companies? B). What is the difference between FIFO and LIFO? C). Given the

QUESTION 5 A). What are inventories? Why are they important to manufacturing companies? B). What is the difference between FIFO and LIFO? C). Given the following data, calculate a level production plan, quarterly ending inventory, and average quarterly inventory. If inventory carrying costs are $6 per unit per quarter, what is the annual carrying cost? Opening and ending inventory are zero. Quarter Quarter 2 Quarter 3 Quarter 4 Totals 5000 7000 8500 9500 Forecast Demand Production Ending Inventory Average Inventory Inventory Cost If the company always carries 100 units of safety stock, what is the annual cost of carrying it? D) Perform an ABC analysis on the following set of products. Item A211 B390 C003 D100 E707 F660 G473 H921 Annual Demand 800 100 450 400 85 250 500 100 Unit Cost 59 $90 S6 $100 $2.000 S320 S75 $75

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