Annual sales approximately $20 Million 1. ABC Classification & Application (10 marks) Umket Corporation's CEO recently attended a lunch seminar where inventory management techniques were being presented by a local operations consulting firm Excited by the improvement results that are possible, the CEO is eager to apply these techniques at Umket Corporation, but is not sure exactly how The CEO would first like a general description of what cach concept is, and the benefits cach technique could provide for the following techniques: (3 marks) ABC Classification Periodic vs. Continuous Cycle counting Secondarily, accounting has provided some inventory data below and the CEO would like to know how you recommend applying the techniques at Umket Corporation. For cach item, recommend: (7 marks) An ABC Classification (A/B/C) An appropriate inventory system (Periodic or Continuous) A cycle counting frequency (monthly/ quarterly semi-annual) Tip: Extend the following chart by adding a column for each of these Be sure to sort your data based on your A/B/C classification Item Item Description Unit Cost Annual Volume Unit of Measure PCS PCS FEET POS POS POS 50 12.200 24.300 ROS R.38756 D-12983 G-16728 R-95437 G-67158 R.12487 R-27598 6-49756 R-47617 G-34796 D-17654 G-46872 D-53247 D-75195 G19417 Range drawer Dishwasher frame Insulated wire 300V Range lamp fixture optional) Circuit board control panel Range frame Range handic Plastic tie locking) Range element rack support/slide Water pump 1 phillips show Dishwasher rack copper/lower) Backflow valve 2 PVC tubing MT $26.00 SI10.00 SO17 S8500 $90.00 SIRS 00 $425 500 $14.00 $0.40 $14.00 S003 $21.00 5400 SO 50 14.000 300 8500 185.000 POS POS Nes PCS POS ICS POS METRE 20,200 ISO 250.000 57500 55-4667-2 87-3719.5 75.4538.9 $2.80 560.00 6 5620 Item Unit Cost Order Cost Supplier Lead Time Desired Service Level $9.00 $84.00 $ 90 $40.00 12 99 Supplier Location Payment Currency Unit Cost (CON Equiv) Order Process Order Coats Method of Transport Normal Lead Time (days) Vancouver CON $54.00 Automated $30,00 Truck 3 San Francisco USD $50.00 Sem Automated SB000 Rail 8 Vancouver CON $54,00 Automated $50.00 Air 2 Belling CNY $48.00 Manual $340.00 Ship & Ral 60 Hand VND $45.00 Manual $63000 Set 90