(PROVIDE YOUR WORK IN EXCEL)

Jenn, the owner of Norse Electric Supplies LLC, just hired Luke (he has an impressive resume by the way) to minimize logistics costs. Luke knows that the first thing to do is to work on inventory, and the first step is doing ABC analysis and finding A, B, and C items. He contacts the Sales Dept and obtains the following dataset.

PRODUCT#	UNITS SOLD	PRICE PER UNIT ($)
BN163	120	150
BN164	60	140
BN165	60	130
BN166	60	180
BN167	200	200
BN168	160	190
BN169	80	150
BN170	180	140
BN171	160	120
DF101	540	580
DF102	600	420
DF103	270	660
DF104	240	630
DF105	510	670
HM602	690	3,180
HM603	720	3,060
HM604	540	3,180
HM605	720	3,060
HM606	660	3,270
HM607	1150	6,870
PO404	180	800
PO405	210	650
PO406	240	700
PO407	90	750
PO408	210	600
PO409	300	850
PO410	180	600
PO411	300	950
PO412	270	800
PO413	240	1,000
QS250	720	1,775
QS251	640	1,975
QS252	800	1,800
QS253	440	1,275
QS254	440	2,025
QS255	760	1,475
QS256	400	1,675
SC400	3300	530
SC410	3200	2,480
SC420	3000	950
SC430	2950	1,260
SC440	2940	1,700
SC450	2880	980

a) Perform ABC inventory analysis for total dollar value.

-What are the cut-off levels for A, B, and C items? Why did you choose those cut-off levels?

-How many products are there in each category?

b) Create Pareto Chart for units sold and interpret the graph using the 80-20 rule. (80-20 is a rough number, your case may require using 75-25 or 70-30... remember, you are the decision-maker here)