SECTION A SHORT QUESTIONS $($Task $1)$

$(14)$

$1\mathrm{.}1$ You have been appointed as the inventory manager for a mid$-$sized car manufacturing company, Speedy Motors Inc. Speedy Motors Inc. produces a range of popular vehicles that cater to different market segments. However, the automotive industry is notoriously volatile, with fluctuating consumer demands, supply chain disruptions, and seasonal variations in sales. Your primary task is to devise an inventory management strategy that can effectively handle demand uncertainties while maintaining efficient operations.

a$)$ Identify the most suitable inventory type that can be used by the company to effectively mitigate risks while ensuring efficient operations $(10).$

b$)$ In answering this question, you are expected to provide sufficient reasons to justify your choice $(4).$