$1.$ Perform an ABC analysis using the data below. Calculate the dollar volume, $\%$ dollar value, and classification using Excel. Submit the Excel file.

Item Annual Demand Cost$/$unit Dollar Volume $\%$ Dollar Value Classification

A$1111,000$ $$2\mathrm{.}50$

B$215500$ $$60$

C$325400$ $$8$

D$1132,000$ $$15\mathrm{.}50$

E$218100$ $$1,200$

F$345100$ $$750$

G$1162,000$ $$3\mathrm{.}50$

H$21450$ $$125$

I$1181,500$ $$3\mathrm{.}00$

J$261300$ $$10\mathrm{.}50$

K$1173,0000\mathrm{.}99$

L$121200$ $$5\mathrm{.}99$

a$.$ How are items determined to be A$,$ B$,$ or C$?$

$2.$ Kroger$$s grocery store is doing an inventory analysis for a popular cereal which has a demand of $20,000$ units per year. The cost of each box of cereal is $ $3\mathrm{.}20,$ and the inventory carrying cost is $$0\mathrm{.}68$ per unit per year. The average ordering cost is $$22$ per order. It takes about $3$ days for an order to arrive. The store is open $365$ days per year.

a$.$ What is the EOQ?

b$.$ What is the average inventory?

c$.$ What is the optimal number of orders per year.

d$.$ What is the optimal number of days between orders.

e$.$ What is the ordering and holding cost per year?

f$.$ What is the total inventory cost including the cost of the $$20,000$ units per year?

$3.$ Lead time for one of your fastest$-$moving products is $24$ days. Demand during this period averages $2100$ units for a seven day week.

a$.$ What would be an appropriate reorder point?

b$.$ How would your answer change if lead time drops in half, but the demand stays the same?