1. [10 points] What items do you normally keep in your pantry as inventory? Have you changed the
buying patterns and quantities of goods (that you’d normally buy) due to price increase? How might
the inventory management principles change your way of managing these items? Write a paragraph
(100–200 words) explaining above points.
2. [10 points] What is the purpose of the ABC classification systems in inventory management? Write a
paragraph to explain. (100–200 words)
3. [10 points] What is “safety stock”? What does safety stock provide safety against? Provide a
numerical example to explain the safety stock. (150–200 words).
