A company would like to use ABC Analysis to figure out how to manage and control its inventory. The company is currently running with a lean team that must manage its time wisely. You have just been hired as the inventory control manager and have a few ideas about how you can set$-$up ABC categories to get things started. The company$$s current stock of inventory reflects the following items, item cost, and quantities. Which items would you classify as A items? B items? C items? You can copy and paste the table below into the response box and add columns to show your work and answers.

The process for performing ABC analysis is as follows:

$1.$ Determine a criterion for classifying stock $($i$.$e$.,$ dollar value$).$

$2.$ Find the value of items in stock multiplied by their annual volume of usage.

$3.$ Calculate the percentage of total usage per dollar item.

$4.$ Rank the items based on your calculations in steps $2$ and $3.$

$5.$ Classify the items as A$,$ B$,$ or C$.[$You can determine the best ranges for your company. Standard ranges have been provided in the example for reference$].$

Here is an example:

For the following items perform an ABC analysis based on revenues generated by each item:

Camille's inventory In Stock Item Price Item Revenue Revenue $(\%)$ Category

Apples $150$ $$15\mathrm{.}00$ $$1,500\mathrm{.}0053$ A

Toothbrushes $100$ $$4\mathrm{.}00$ $$400\mathrm{.}0014$ B

Paper Towels $200$ $$1\mathrm{.}00$ $$400\mathrm{.}0014$ B

Flowers $50$ $$1\mathrm{.}00$ $$300\mathrm{.}0011$ B

Squash $30$ $$1\mathrm{.}50$ $$200\mathrm{.}007$ C

Magazines $200$ $$0\mathrm{.}50$ $$25\mathrm{.}001$ C

Mushrooms $100$ $$0\mathrm{.}10$ $$15\mathrm{.}001$ C

Balloons $400$ $$0\mathrm{.}25$ $$7\mathrm{.}500$ C

Total Revenue $$2847\mathrm{.}50$

Category Percentage of Revenue $($for this case$)$ Standard Ranges

A $50-10070-100$

B $10-5020-70$

C $0-100-20$

Using the information below, conduct an ABC Analysis for the company based on revenue generated and explain its importance to managing and controlling inventory going forward. explain what formulas were used to find the answers,

Item Part # Item Cost Qty in Stock

$142-$AZ $$546\mathrm{.}00318$

$4392-$GF $$45\mathrm{.}001,250$

$86935-$ES $$15\mathrm{.}353,456$

$173-$DC $$653\mathrm{.}001,876$

$999-$BA $$199\mathrm{.}00526$

$7846-$NM $$23\mathrm{.}00973$

$2765-$OP $$385\mathrm{.}00790$

$103-$VX $$12\mathrm{.}504,875$

$2648-$YT $$16\mathrm{.}755,185$