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Item Code Annual Demand Units Cost , Unit/Rs A1 300 50 A2 4000 12 A3 1500 70 A4 6000 30 A5 1000 20 A6 500

Item Code Annual Demand Units Cost , Unit/Rs
A1 300 50
A2 4000 12
A3 1500 70
A4 6000 30
A5 1000 20
A6 500 50
A7 300 1500

IndustrialMotors C_(0) keops nearly 6000 items in its central store. The annual demand and unit cost of the items (only 7 items are included here) stored in the stores are given in the table below. [7] Item Code Annual demand (units) Cost/unit Rs A1 300 50 A2 4000 12 A3 1500 70 A4 6000 30 AS 1000 20 A6 500 50 A7 300 1500 a) Develop a system to control IndustrialMotorsCo's inventory. (Show/explain every calculation, draw graphs, etc). b) What is Cycle inventory? What are the different costs that affect cycle inventory.

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