Problem 1.

(Chapter 3: The Logistics/Supply Chain Product) Davis Steel Distributors is

planning to set up an additional warehouse in its distribution network. Analysis of item-sales

data for its other warehouses shows that 25 percent of the items represent 75 percent of the sales

volume. The company also has an inventory policy that varies with the items in the warehouse.

That is, the first 20 percent of the items are the A items and are to be stocked with an inventory

turnover ratio of 8. The next 30 percent of the items, or B items, are to have a turnover ratio of 6.

The remaining C items are to have a turnover ratio of 4. There are to be 20 products held in the

warehouse with sales on the warehouse forecasted to be $2.6 million annually. What dollar value

of average inventory would you estimate for the warehouse?

*Time sensitive. Pls answer within 2 hrs of being posted* This question was answered before, however, the work on the excel sheet was not shown. Please show your work on excel.