Question: QUESTION 4 Given the following inventory information, construct an (a) ABC analysis by annual dollar usage, (b) ABC analysis by current inventory value, and (c)
QUESTION 4
Given the following inventory information, construct an (a) ABC analysis by annual dollar usage, (b) ABC analysis by current inventory value, and (c) an ABC inventory matrix. Is the firm stocking the correct inventories?
| Item Number | Unit Cost | Annual Usage | Phy Inv |
| B8867 | 6 | 100 | 8,000 |
| J1252 | 5.25 | 6,500 | 120 |
| K9667 | 0.37 | 4,000 | 1,000 |
| L2425 | 1 | 1,500 | 375 |
| M4554 | 5.5 | 2,000 | 500 |
| T6334 | 70 | 500 | 800 |
| W9856 | 0.75 | 800 | 20,000 |
| X2215 | 1.5 | 8,000 | 2,000 |
| Y3214 | 32 | 1,000 | 500 |
| Y6339 | 4 | 3,500 | 125 |
Calculate the total annual usage.
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