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1. Consider the pressures for small vs. large inventories. Which situation does Crayola seem to fit, and why?2. Explain how both independent and dependent demand items are present at Crayola.3. The Marker Maker product recently experienced an unexpected surge in demand and the supply chain’s agility was credited with helping to meet the crisis. We have discussed four ways to classify operational inventories by how they are created. Regarding the ways managers can use these inventories to satisfy demand, explain how Crayola can achieve the flexibility to adjust to unexpecteddemand surges.Answer:INTRODUCTIONFor companies with complex supply chains and manufacturing processes, balancing the risks of inventory gluts and shortages is especially difficult. This includes the management of raw materials, components and finished products, as well as warehousing and processing such items.Small Vs. Large Inventories