Question A2

(a) Jeffery is the owner of a fruit store selling both fresh fruits and dried fruit snacks. By keep tracking of the historical sales data, Jeffery realized that the demand for the grapes has a significant growth rate and it is sold out quickly every day and thus he orders more from Japan and keeps extra in its warehouse in the situation that the demand has further increment. The durian is also very popular which is ordered daily to meet the regular demand. As mid-autumn festival is upcoming, the store manager, Kitty, plans the inventory of different types of fruits. She reported to Jeffery that the Thailand supplier has already distributed the pomelo and it is on the way to the store. She has asked the store assistant to place the peach at the front door of the store to attract customers as it is only available for sales for few months from late August. Finally, she decides to stock up the U.S. strawberry for the Christmas because the supplier there is having serious flooding problem currently. Identify the FIVE types of inventory from the above case. Match the types of inventory with the fruits.

(cycle stock, in-transit inventories, seasonal stock, speculative stock)

(b) Adidas is a manufacturer producing different kinds of sportswear products such as jacket, t-shirt, and shoes. It is found that a jacket sold in Hong Kong by Adidas has the label written in English, Chinese, German, etc. By considering the inventory management, explain any THREE reasons Adidas would like to do so.