Using the $80\%,15\%$ and $5\%$ rule for classification A$,$ B$,$ and C respectively,

answer the following questions:

$2$ pts for each

question $1-5$

$1.$ List the item numbers that are classified as A items $0$

$2.$ List the item numbers that are classified as A items if the List price of

E$4051$B$7$C$05$ was tripled. $0$

ABC Electronics supplies microcomputer circuitry to a company that

incorporates microprocessors into refrigerators and other home

appliances. One of the components has an annual demand of $250$ units,

and this is constant throughout the year. Carrying cost is estimated to be $$1$

per unit per year, and the ordering $($setup$)$ cost is $$20$ per order.

$3.$ To minimize cost, how many units should be ordered each time an order

is placed?

$4.$ How many orders per year are needed with the optimal policy?

$5.$ What is the average inventory if costs are minimized?

$6.$ Suppose that the ordering $($setup$)$ cost is not $$20,$ and Cotteleer has been

ordering $150$ units each time an order is placed. For this order policy $($of $)$ to

be optimal, determine what the ordering $($setup$)$ cost would have to be$.$

question #$6$

is worth $5$ pts