1. With the rapid expansion of AKEs business, Adam is contemplating opening three more branches in new housing residences at strategic locations. The options available are either to rent the premises or to buy them. Critically assess and explain to Adam how each of the alternatives can impact the operational costs of AKE.

2. Adam is undecided whether to buy a higher volume of cleaning inventories for a better price from the suppliers or keep its existing practice of buying as-when-needed basis. The former will require additional space to store the inventories while the latter is sufficient with the existing facility. Analyze and explain to Adam what benefits and shortcomings of these two options.