A SME manufacturing company keeps 20 items in its inventory. The operations manager would like to prepare an inventory strategy by using ABC Analysis technique.

a) Determine the inventory items for each category (A-B-C). (Please show all your calculations) (20 points)

b) Depending on your findings in Part a, what kind of inventory control strategy would you determine for each item in terms of the number of checks for each item, the importance level of the items in the inventory etc. (10 points)

	Item no	Unit Cost	Usage
	K1	10	476
	K2	13	322
	K3	11	306
	K4	34	426
	K5	20	100
	K6	22	215
	K7	33	84
	K8	19	171
	K9	22	315
	K10	20	417
	K11	36	43
	K12	25	461
	K13	28	500
	K14	29	309
	K15	20	278
	K16	35	97
	K17	28	259
	K18	23	105
	K19	34	344
	K20	23	83