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Disaster is on the horizon for Baker's Battery Retail due to a lack of proper inventory management. Since its inception, Mr. Baker purchases a variety of car batteries for resale. This method works to some extent, even though Mr. Baker would end up receiving more of one type of battery than others. As the retail store expands, he is now finding it difficult to keep track of his stock and he is frequently out of stock on some types of batteries. In addition, some of the batteries become damaged because of the long period of time it has been there. It is also evident that Mr. Bake has too much of one type of battery stock piled in his warehouse. To reduce his problem and employ a level of efficiency, he has started doing some research and has come across the concepts of Inventory Control and a 'Just In Time' System. 1. Briefly explain the importance of having efficient inventory management. (5 marks 2. Excluding stock pile-ups and damage to batteries, as outlined in the case above, discuss TWO other consequences that Mr. Baker may face if he holds too much stock. (5 marks) 3. In addition to the research completed by Mr. Baker on the 'Just In Time' System, you too have also done some research on the topic. Is the Just In Time (JIT) System appropriate for Bakery's Battery Retail? Be sure to give reasons for your choice. (5 marks) 4. Use the Figure below to determine the following: (a) Maximum Stock (b) Minimum Stock (c) Reorder Level (d) Reorder Quantity (e) Lead Time (10 marks)

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