Aeon Inc. is currently grappling with significant difficulties in effectively managing its

inventory. The company boasts a wide array of items in its inventory, but due to limited time

and resources, it struggles to allocate equal attention to each item. Table 1 is a sample of the

items in stock, along with other relevant parameters, including the holding cost as a certain

percentage of the unit price.

Item Number	Estimated Annual Demand	Ordering Cost	Holding Cost (%)	Unit Price
A4-010	20000	50	20	2.50
A5-201	60200	60	20	4.00
B6-400	9800	80	30	28.50
B6-401	14500	50	30	12.00
B7-100	6250	50	30	9.00
B9-103	7500	50	40	22.00
CS-300	21000	40	25	45.00
CS-400	45000	40	25	40.00
CS-041	800	40	25	20.00
D1-001	33100	25	25	4.00

Table 1 Details of items in stock

You are assigned the job of suggesting a system for allocating control time for those items.

Identify the appropriate system. Discuss how the items in the above list would be categorised

based on their importance.

(20 marks)