a. Construct: i. ABC analysis by annual dollar usage ii. ABC analysis by current inventory value (Performing the tables and charts in excel) b. Based on these analyses, do you think the firm is stocking the correct inventories?

(15 points) Given the following inventory information: Item Unit cost Annual usage number ($) (units) B11 12.00 100 J12 10.50 6,500 K20 0.50 4,000 L35 2.00 1,500 M37 11.00 2,000 161 140.00 500 W64 1.50 800 X68 3.00 8,000 Y89 64.00 1,000 Y94 8.00 3,500 Current inventory (units) 8,000 120 1,000 375 500 800 20,000 2,000 500 125