Instructions: You work as a supply chain analyst for a manufacturing company that produces electronic components. Your supervisor has asked you to conduct an ABC analysis of the company's inventory to identify the most important items and prioritize them for management.

Using the provided inventory data (see below), conduct an ABC analysis and answer the following questions:

What percentage of total inventory value is represented by the A, B, and C categories?

Which items should be classified as A, B, and C based on the ABC analysis? What are the respective inventory values and percentages for each category?

Based on the ABC analysis, what recommendations would you make to the company regarding inventory management and control?

Inventory Data:

Item Number	Description	Quantity on Hand	Unit Cost
1001	Resistor	5,000	$0.10
1002	Capacitor	2,500	$0.20
1003	Diode	1,000	$0.30
1004	Transistor	750	$0.40
1005	Integrated Circuit	500	$0.50
1006	Connector	250	$0.60
1007	Battery	100	$1.00
1008	LED	50	$1.50

Rubric:

Criteria	Points
Accuracy of ABC analysis calculations	4
Correct classification of items as A, B, or C and corresponding inventory values and percentages	3
Quality of recommendations for inventory management and control based on ABC analysis	2
Overall clarity, organization, and professionalism of presentation	1

Total Points: 10