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You are the inventory manager for a manufacturing company that produces a variety of electronic devices. Your task is to perform an ABC analysis on

You are the inventory manager for a manufacturing company that produces a variety of electronic devices. Your task is to perform an ABC analysis on the company's inventory to better manage stock levels and optimize inventory costs. Your company uses the following policy to classify inventory: items A: 70-75% of inventory value, Items B: 20-25% of inventory value, and items C: <5% of inventory value. Below is a list of inventory items, along with their annual consumption volume and cost per unit: Item Annual Volume Cost per Unit Microprocessors 5000 $250 Batteries 25,000 $3.5 LED Displays 8000 $100 Screws 10,000 $0.5 Wiring Harnesses 20,000 $15 Plastic Casings 15,000 $20 What items should be classified as A, B, and C? A. Items A are: Microprocessors, batteries, and LED displays. Items B are: screws, wires harnesses, and plastic casings. There are no items in the C category. B. Items A are: Microprocessors and plastic casings. Items B are: LED displays. Items C: batteries, wires harnesses, and screws. C. None of the above D. Items A are: Microprocessors and LED displays. Items B are: wires harnesses and plastic casings, and items C are batteries and screws. E. Items A are: microprocessors, batteries, and

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