ABC INENTORY ANALYSIS ASSIGNMENT

House & Home $(H$&$H)$ is a retaller of funiture, housewares, and decorative items. The company operates in the southeastern U$.$S$.$ HSH was founded by Aubum graduate $($Class of $1981)$ Dusty Smith in $1965$ and has enjoyed consistent grovth throughout its history. During a recent heview of company finances, Dusty determined that the company was holding too much invertory.

Dusty has hired you as a consultart to help distinguish the top sellers from the "dogs". To that end, Dusty has provided yow a rantym sampie of $200$ SKUs and their sales over the past $12$ morths. Dusty warts to be able to clesely menitor his "strategic sellers" which constitule the $20\%$ of hems with the geatest salies $($the A itams$)$ Hie wants to provide only minimal invertery management of the lewest selling $30\%$ of items $($the C $($tems$).$ He believes the remairing $8$ hems require a bit mere altention than the $C$ items.

Your assignment is to devels an ABC Ahalysis sproselsheat using the template provided to you. We are gory te assime that the groft margin on aach item is the items. The A lems will be those that maile se the toe $20\%$ of this list. the $8$ items will be the next $50\%,$ and the C hems will the the beitum $30\%$ Here are some key questions that you wifl need to answer aher buitare the spreadsheet:

How many A tems do you have?

What is the cumbiative S of COOS fer all the A iteme?

How many B thems are there?

What is the cumulative $$S$ of COGS for all A and $B$ items combined?

How many $C$ flems are there?

How would you propose to manage the inventories differently for the A vs$.$ C classes?

Upload your spreadsheet $($with answers to the questions shown on the bottom$)$ to Canvas.