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Hershey Office Supply, Inc. produces office supplies that are sold primarily to corporate users. Elizabeth Rigby, vice president of logistics, would like to move ahead

Hershey Office Supply, Inc. produces office supplies that are sold primarily to corporate users. Elizabeth Rigby, vice president of logistics, would like to move ahead on a project that was started about a year ago. At that time, a group of logistics analysts developed a list of stock-keeping units (SKUs) and their annual sales

SKU

Annual Sales

A2067

$541

A2133

$2,471

A4142

$110

A6916

$287

A7025

$149

A7428

$266

A7850

$338

B1139

$104

B2155

$311

B4151

$90

B5568

$121

B7116

$604

C2032

$442

C5816

$215

C7631

$178

C8605

$248

C9323

$1,167

C9814

$1,374

F3300

$1,640

F6018

$168

F9575

$13,364

G5967

$115

T1192

$189

T1801

$158

T4470

$678

T8594

$127

T8994

$766

T9039

$1,004

T9204

$1,992

T9800

$488

X1561

$5,699

X2661

$3,146

X9988

$4,142

Y1247

$202

Y1645

$231

Y2133

$100

Y3118

$873

Y4100

$134

Y4587

$8,339

Y4765

$141

Y6685

$368

Y8727

$403

Y9971

$95


$53,578

She would like to develop tighter inventory controls for SKUs. Your task is to prepare the following analysis for her.

A) Classify the SKUs in the list as A, B, or C items based on their annual sales revenues, where A items generate the first 80 percent of the revenues, B items generate the next 15 percent, and C items generate the remaining 5 percent.

B) Prepare a report that summarizes the SKU count, the percent of total SKUs, the sum of annual sales, and the percent of total sales by class (A, B, and C).

C) Develop an x-y scatter chart showing the cumulative percent of items (x) and the cumulative percent sales (y).

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