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Q4 The Chassis Company locates on the shores of Lake Michigan is a manufacturer of automobile engines. Table Q4 gives historical data of typical annual usage of component parts for one of its six-cylinder engines. The cost of the finished engine has been increasing by about 5% a year. This is principally due to approximately the same increase in cost of the component parts. The company orders each parts every month. Carrying and stocking cost is 10% of the unit cost. Ordering cost is $30 per order every parts. Perform the following: (i) Develop an ABC analysis to categorize the inventories and draw a pareto chart. (ii) If the company follows the basic EOQ model, how much can be the expected company savings for its total inventory cost? Total cost Table Q4 Annual Unit Cost Quantity (units) ($) 3,000 270 Part No. ($) 810,000 205Y 196G 7,600 22.4 167,776 111D 33,000 2.5 80,000 324H 23,000 1.5 33,000 128H 54,000 0.5 25,000