A CARE warehouse in Tegucigalpa, Honduras holds a variety of humanitarian inventory items such as tents, blankets, kitchen utensils, canned food, pallets of water bottles, and medical kits. Over time, the warehouse manager has lost track of the inventory due to spoilage, theft, and poor purchasing, invoice, and warehouse receiving documentation.

He decided to do an audit and ABC analysis of the inventory on hand. After four days of counting inventory, he summarized the data shown below, available in the Excel data file C20P41.xlsx:

Perform an ABC analysis of this inventory and explain what you have learned using the Excel ABC template. Classify the A, B, and C categories based on your analyses.

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Data for Problem 41: CARE Inventory Items Pre-positioned Inventory on Unit Item Description Hand Count Cost 1 Box of bottled water 1,982 $6.50 2 Canned beans 4,912 $2.14 3 Canned fruit 2,418 $2.98 4 Canned tuna 3,220 $3.88 5 Canned sardines 5,700 $2.80 6 Canned chicken 4,750 $3.00 7 Pasta bags 15,502 $1.75 8 Powdered milk box 2,400 $8.15 9 20 Kilogram bag of rice 603 $38.25 10 Dry beef glass jars 1,840 $5.60 11 Four meters square tarpaulins 3,820 $14.66 12 Plastic plates 8,800 $1.45 13 Sledge hammers 345 $37.90 14 Steel heavy rakes 400 $19.60 15 Steel shovels 550 $29.70 16 Flashlights 2,430 $4.50 17 Medical kits 8,200 $10.80 18 Single blanket 6,325 $7.95 120 19 Plastic eating utensil packets 19,200 $0.59 Tents 644 $225.00