Hello everyone Inventory is the quantity of materials in hand $.$It is maintained so that there cannot be stoppage of production due to non availability of goods.This problem is concerned with inventory of finished product shoes $.$ In a shoes business at present inventory of only some specific sizes are maintained.As a result many customers are not getting the required product.Thus some deportments are becoming loss making.They want to convert it a shop large inventory of shoes.Fallowing are the good and bad side of the policy $.$Good side of the policy$==>$Now customers will get their requirements.They will be satisfied $.$Sales of the company will grow.In consequence profit will increase$==>$As customers are getting desired product and better service,they are satisfied.It will create a goodwill of the concern in the market $.$So sales in future will move up$.$Customers will be attracted to it$.$Result is more profit to the concern.Bad side$$ of the Policy$==>$High stock will increase working capital requirement.So financing charges like interest on loan will rise.It will reduce net distributable profit.$==>$Due to huge stock,a portion of stocked shoe may remain unsold.They can loss their quality.So it will compel them to sell at a reduced loss.If this quantity is high,then profitability will be at stake.$==>$Due to long period of stock,quality can decrease.It will create bad will of$$the company.Future sale will decrease.LIFO,FIFO weighted average$$ are methods of pricing materials issued for production$/$sale$.$It effects cost of goods sold as well as value of end inventory.In FIFO Method goods recived first are issued first.So stocks are valued at old price.In weighted average,average prices of different lots are considered $.$So all these methods are pricing technique.They have no role in determining quantities of merchandise in hand.