$[15$ points$]$ XYZ Electronics is a company that sells various electronic products such as laptops, tablets,

smartphones, cameras, and accessories. The company uses ABC inventory analysis to classify its

products into three categories based on their annual consumption value. The table below shows the

data for some of the products.

Product Description Annual Demand Unit Cost

Laptop $-$ Brand $1500$ $$900$

Laptop $-$ Brand $2300$ $$750$

Laptop $-$ Brand $3200$ $$1,250$

Tablet$-$ Brand $1500$ $$500$

Tablet$-$ Brand $2750$ $$750$

Smartphone $-$ Brand $12000$ $$1,000$

Smartphone $-$ Brand $2800$ $$800$

Camera $-$ Brand A $25$ $$2,500$

Camera $-$ Brand B $20$ $$3,000$

Laptop Case $-$ Size $1100$ $$10$

Laptop Case $-$ Size $2100$ $$15$

Tablet Cover $-$ Size $1300$ $$15$

Tablet Cover $-$ Size $2400$ $$20$

Smartphone Case $1500$ $$15$

Smartphone Case $2000$ $$20$

Camera Bag $-$ Small $10$ $$35$

Camera Bag $-$ Large $20$ $$50$

Headphones $-$ Brand A $300$ $$50$

Headphones $-$ Brand B $200$ $$100$

Charger $250$ $$10$

a$.$ Perform an ABC analysis and assign each product to one of the three categories $($A$,$ B$,$ or C$)$

based on the ABC inventory analysis. Explain the criteria you used to classify the products.

Clearly state which items belong to category A$,$ B$,$ and C$.($You may use the Excel template

provided. Provide screen captures to show your work$).$

b$.$ What are the advantages and disadvantages of using ABC inventory analysis for XYZ

Electronics?

c$.$ How can XYZ Electronics improve its inventory management by using ABC inventory analysis?