ABC Analysis classifies inventory into three categories according to some measure of importance with the intention of

allocating control efforts accordingly. The idea is to establish inventory policies that focus resources on a few critical

inventory parts and not the many trivial ones. It is not realistic to monitor inexpensive stock with the same intensity as

very expensive items.

You are provided with the following information. Conduct an ABC analysis, categorising each item of stock

appropriately. $(80\%=A,15\%=B,5\%=C)$