Type or paste question here

Question 1 (30 Marks) a) What is the premise of ABC Analysis? What are the three steps in making ABC inventory analysis? (5 Marks) b) State and describe with examples the three types of costs associated with inventory. (5 marks) c) The annual demand of a Bottled Water Distribution company is 25,000 boxes, the ordering cost 40 per order, the carrying cost 15%, and the unit cost 15 per box. The order quantity is 500 units. Calculate the following: 1). Annual ordering cost 11). Annual carrying cost 111). Total annual cost + iv). Total number of orders per year (10 marks)