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QUESTION 2 Given the following inventory information, construct an (a) ABC analysis by annual dollar usage, (b) ABC analysis by current inventory value, and (c)
QUESTION 2 Given the following inventory information, construct an (a) ABC analysis by annual dollar usage, (b) ABC analysis by current inventory value, and (c) an ABC inventory matrix. Is the firm stocking the correct inventories? Item Number B8867 J1252 K9667 L2425 M4554 T6334 W9856 X2215 Y3214 Y6339 Unit Cost Annual Usage 6 5.25 0.18 1. 5.5 70 0.75 1.5 32 4 1 100 6,500 4,000 1,500 2,000 500 0.18 8,000 1,000 3,500 Calculate the total annual inventory value. Phy Inv 8,000 120 1,000 375 500 800 20,000 2,000 500 125
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