(a) Discuss four approaches to inventory management
(b) Njoro Manufacturers uses a large quantity of sorghum in its production process. On an Annual basis, 40,000 tonnes of sorghum is consumed. In a year, the firm has a 50 week production. It costs Sh. 100 to initiate and process an order and delivery follow two weeks later. Storage costs for the sorghum are estimated at 10 shillings per tonne per year. The current ordering policy is to place an order twice a year when the sotck falls to 10,000 tonnes. Njoro manufacturers is contemplating changing its current ordering policy
(i) Recommend an appropriate ordering policy for Njoro Manufactures.
(ii) Contrast the recommend ordering policy with the current policy.