Given the following inventory information construct an ABC analysis based on annual Euro usage

Item Code Unit Value $()$ Demand in Units Current Inventory

$16\mathrm{.}001008000$

$25\mathrm{.}25650120$

$30\mathrm{.}2540001000$

$41\mathrm{.}001500375$

$55\mathrm{.}502000500$

$670\mathrm{.}00500800$

$70\mathrm{.}7580020000$

$81\mathrm{.}5080002000$

You should present your answer using Excel.

$($I$)$ Is the firm stocking the correct inventory? Explain your answer.

$($II$)$ You have been informed that item code $3$ is going to be subject to a design change, how does this affect the ABC analysis?

$($III$)$ The supplier for item code $4$ has increased their lead time to $6$ months, how will this affect the ABC analysis?