b. ABC Classification & Application (16 marks) William believes that he can reduce the costs of managing the manufacturing equipment maintenance stock. He would like to do an ABC analysis of the inventory to start looking into doing cycle counting. For each item, recommend: (12 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

Item #	Item Description	Unit of Measure	Unit Cost	Annual Volume
C-44890	Controller Back Plate	PCS	$5.00	52,500
F-67438	Power Adapter	PCS	$6.00	51,000
F-37951	Receiver Box	PCS	$38.00	50,500
C-44790	Controller Face Plate	PCS	$8.00	53,500
C-42855	Input Port	PCS	$0.95	74,500
C-94365	LCD Screen (5" X 3")	PCS	$27.00	61,500
A-57429	Power Extender Cable	PCS	$7.50	47,500
C-28572	Circular Control knob (1")	PCS	$0.60	52,500
C-87765	Memory chip	PCS	$29.00	56,000
S-36275	Insulated wire (12V)	FEET	$0.15	145,000
S-86473	1/2" phillips screw	PCS	$0.03	375,000
S-37991	Plastic tie (locking)	PCS	$0.02	150,000
C-28451	Touch Button - arrow	PCS	$0.10	225,000
A-53279	Remote (w/lithium battery)	PCS	$41.00	1,500
C-76554	Micro Antenna	PCS	$11.00	37,500