Problem
I. Is it possible for the same product to be categorized both as raw materials and as finished goods? Give an example or explain why it is not possible.
II. A supermarket orders frozen pizza for its inventory on a continuous review basis. During the winter the pizzas are delivered once a week, in a pre-calculated optional quantity. In the summer the cost of storing the pizza inventory goes up by 25% due to the increased energy consumption for refrigeration. What happens to the optimal order quantity for replenishing the inventory of pizza in the summer if the ordering cost and demand remain the same?
III. Explain what pipeline inventory means.