Chapter $12-$ Inventory Management $($Part $1)$

Determine an A$-$B$-$C classification for these items:

Which items are A$,$ B$,$ and C $-$ explain how you derive the answers? Use a table or excel spreadsheet to illustrate your work.

$\backslash$table$[[$Item Unit,Cost,Annual Volume $(000)],[1,300,25],[2,90,30],[3,30,60],[4,50,10],[5,15,70],[6,100,40],[7,10,60]]$

Hint:

Determine the Annual Dollar Value $($Unit Cost $*$ Annual Volume$)$ for each item and the sum of the individual Annual Dollar Values. Arrange the items in descending order based on Annual Dollar Values. Then, determine the percentage of items and the percentage of Annual Dollar Value for each category $($round to two decimals$).$ Determine the A$,$ B$,$ and C items.