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Task 1 - Inventory Management & Control Frank's Fasteners a leading company based in UK, which makes industrial fasteners has the following average annual inventory level, as given in Table T1a. To have a more proper control over the inventory the company needs to do A-B-C analysis based on the annual consumption value. Cost () per Unit 0.45 0.60 1.45 3.50 Item Machine screw Cable clamp Eyebolt Tape measure Nail Carabiner Wing nut Flat washer S hook Ferrule Annual Number of Units Sold 22,000 9,000 18,000 51,000 13,000 37,000 81,000 109,000 14,000 13,000 Annual Consumption Value () 9,900.00 5,400.00 26,100.00 178,500.00 9,100.00 70,300.00 2,430.00 7,630.00 2,800.00 16,900.00 0.70 1.90 0.03 0.07 0.20 1.30 Table T1a - Average Annual Inventory a. Perform A-B-C classification of the inventory and classify the items based on 70-20-10 rule. (10 Marks) b. Prepare a Pareto Chart with the above information. (05 Marks) c. Suggest what type of stocking policy could be adopted for each class of inventory. Justify your answer with sufficient explanation. (05 Marks) d. The ordering costs and the carrying costs of the three classes of inventory are given in Table T1b. Calculate the annual cost of stock of Frank's Fasteners, if the company follows EOQ for ordering the items. Class Carrying Costs (C) Ordering Costs per Order (S) in 2.00 10% of Item Cost/Year 12% of Item Cost/Year B 1.50 1.00 15% of Item Cost/Year Table T1b - Inventory Costs (10 Marks) [Total marks 30] Note: All calculations to be shown for an accuracy of , ignoring/rounding the decimal places