The NextGen distribution is working on improving inventory management by performing an ABC Analysis. The management team considers the following factors for the analysis: hits and GMROI. The GMROI range has been determined based on best-in-class industry numbers, where A items have over 1000, B items have a number between 500 and 1000, and C items have a number below 500. Assume A item is 5, B is 3, and C is 1 point. And GMROI is two times as important as hits. Finally, top 70% is a next 25%B and the rest are C items. (Use three decimal place accuracy for ratio and cumulative ratio calculations when needed, e.g., 0.123) a. Perform the final ABC Analysis by combining hits and GMROI.

 

a. Perform the final ABC Analysis by combining hits and GMROI. (25 Points) Item Hits GMROI 1 60 100 2 90 1200 3 450 600 4 10 420 56 80 90 6 400 800 7 340 1050 8 210 765 9 190 400 10 300 320