Task $4($Inventory Control$)$

National Industries has a large manufacturing facility in Central Africa. The company keeps the needed items in stock in its warehouse. Table T$4$ lists the total items the company keeps in stock, with the annual usage and the unit item cost.

Table T$4$

$\backslash$table$[[$Item$,\backslash$table$[[$Annual$],[$Usage$]],\backslash$table$[[$Unit item$],[$cost$],[($OMR$)]]],[$BV$-1221,5400,510],[$BV$-1364,1300,580],[$CD$-1292,5900,50],[$DF$-1384,18,5000],[$EZ$-1357,60,2400],[$HK$-1329,540,720],[$HQ$-1212,950,630],[$IV$-1224,1700,420],[$JQ$-1387,14600,130],[$LQ$-1298,14000,1270],[$OL$-1359,75,1470],[$PB$-1218,35,4200],[$RB$-1328,1800,380],[$TL$-1250,8200,85],[$TV$-1283,14,5500],[$UB$-1326,370,370],[$UC$-1306,6200,380],[$WD$-1292,15900,1190],[$YO$-1318,3000,3000],[$ZU$-1372,27800,110],[,,]]$

The Finance Manager feels that the company has not formulated a proper inventory policy to minimize the inventory costs.

a$.$ Categorize the items in the company stock as Class A$,$ B and C based on the $70-20-10$ rule.

$(15$ Marks$)$

b$.$ Prepare a Pareto Chart showing the three classes of stock.