ARO CZ 150268 G c D H A local company located in Nuwa assembles engines for customized trekling sportutility vehicle SUV. During the year end 2019 financial review, the company is concerned with its bloated inventory cost for the past five years. The profitability of the company has been declining year on year due to the effect of the increasing inventory costs. The newly hired manager who is a mechanical engineer is tasked to look into this matter and will provide a comprehensive proposal report to the company CEO to reduce the bloating inventory cost. The current consumption or usage of parts of the assembly departmentis shown in Table Q1. This data shows the typical annual usage or consumption of component parts for its engines. He bund out that there is big mismanagement or neglect of the company inventories Currently, the company is ordering parts from its suppliers locally and abroad once every three months. Develop an ABC analysis for the company's inventories. Show completely the results in tabular form using excel. [6] Create a PARETO analysis for the ABC analysis using excel [4] Considering your class A' inventories, determine the economicorder quantity EOQ using the following assumptions; zero safety sbok for each class A inventories, stocking cost is 10% of the unit price, ordering cost for any class A inventories is 120 OMR per order. Determine the cost savings ifE0Q is followed instead of the currentordering system of the company which is once Table Q1: Annual Usage of Component Parts Part Number Annual quantity unit TOMRynit) 1110 30.92 128H 48.525 50 1986 7,338 22.40 205Y 2.872 270.00 216U 2,991 12.80 217J 3,487 122.40 228G 823 98.40 235D 63.161 1.80 249E 13.646 258L 2,059 62.40 261K 19.000 1.20 2720 4,411 9.00 324H 20.103 1.50 3330 2,269 15.40 3340 7,234 24.00 3525 12.683 19.20 3910 2.107 51.80 421A 4.079 9.80 14325 4.488 7.60 4385 71.578 0.26 4627 3.348 13.50 462R 3.731 18.80 483H 3.000 132.00 478L 26.785 1.20 5211 2.788 13.80 8820 1.121 144.00 81DB 29.760 3.10 > Questions 0.30
