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. Annual Annual Number Cost (e per Consumption Item of Units Sold Unit Value () Machine screw 21,000 0.55 11,550.00 Cable clamp 10.000 0.45 4,500.00 Eyebolt 15,000 1.45 21,750.00 Tape measure 47,000 3.80 178,600.00 Nail 13,000 1.00 13,000.00 Carabiner 42.000 1.70 71,400.00 Wing nut 77,000 0.04 3,080.00 Flat washer 113,000 0.07 7.910.00 Shook 12,000 0.30 3,600.00 Ferrule 13,000 1.60 20,800.00 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 A Ordering Costs per Carrying Costs (C) Order (S) in 2.00 10% of the Cost Year B 1.50 12% of Item Cost/Year c 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