Saved Help Save & E Ches Problem 20-40 (Algo) In the past, Taylor Industries has used a fixed time period inventory system that involved taking a complete inventory count of all items each month. However, increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor involved in inventory stockrooms, yet without increasing other costs, such as shortage costs. Here is a random sample of 20 of Taylor's Items ITEM NUMBER 1 2 3 ANNUAL USAGE 5 13,600 900 ANNUAL USAGE 5 1,900 12,600 2,600 51,500 10, 100 1, 100 2.400 11,600 5,500 15.700 ITEM NUMBER 11 12 13 14 15 16 12 18 19 20 5 6 7 8 9 10 43,300 10,400 1,500 10,800 4,400 62,700 3,900 3,300 a. Classify each item in inventory using an ABC plan Item Number Class 5 1 2 3 4 2.14 points 5 Skipped 7 8 eBook Print 10 11 12 References 13 14 15 16 17 18 19 20 MC