45 Problem 5: (15 points) The warehouse manager at Malik's Library is interested in studying their inventory more carefully. Therefore, this manager is asking for your help to determine an ABC Classification for a set of ten products they sell. Please complete the missing items in the table below. Item Annual Dollar Value Percentage Total Value % Value Category Volume per Unit Volume (000) (000) Diaries 396 14.8% 17820 33.8% Notepads 15 472 4.9% 7080 13.4% Correcting 37 183 12.2% 6771 12.9% fluid Staplers 35 155 (a) 5425 10.3% Boxes of 45 117 14.8% 5265 10.0% paperclips Pens 44 80 14.5% 3520 6.7% Boxes of 10 296 3.3% 2960 5.6% staples Rulers 22 82 7.2% (c) Pencils 5.9% 1512 2.9% Erasers 33 15 10.9% 495 0.9% Total 304 1880 52652 (b) 18 84 points) (b) (1 points): (c) (1 points): Please designate an ABC classification using the reference break points for both Volume and Value that are provided. NOTE: Make the breaks on both value and volume - if the breaks are a little bit over / under the reference values, simply use your best judgment and make a note explaining your reasoning. Break Points: % Volume % Value A 10 to 20 45 to 70 B 20 to 40 15 to 30 C 50 to 60 10 to 15 (d) (10 points) In the last column of the table, specify the category (A, B or C) for each item. Please show your calculation below to justify the choice of the category for each item. If you are uncertain about any categorization, write a note clearly explaining your logic. (e) (2 points) List two reasons why ABC analysis is important