Question 1 , please. Thank you! Cat. ref.Sales Unit DescriptionSamplenumberSales UnitLast 12 mo. Inventory as Reordersales (units) at last year Quantityend (units) (Units)1,0001,000numberCost (€)111036Disposable Aprons (10pk)Ear-loop Masks(Box)Drill Type 164Disposable Gloves Large150ml SyringeIntubation Tube (Adult)Pocket Organiser Blue2.40100,0002114563.6060,0001203115631.10220420250120541237243.5035,4008,50010,00011.3043012010097.406,5001206.127742020129797.00160500813063CPAP Consumable Kit187.0040010Zinc Oxide TapeStethoscope HeadDisp. Latex CatheterRoll-up Wheelchair RampLFT Tube132361.501,2605010134546.2510162511135970.603,56012201213999152.5012445013140681.4022,50010,5008,000Cervical CollarHead Wedge141424212.00140242014310144051589.00441016Three-Wheel Scooter755.00141714456Neonatal Trach. Tube80.402686.10014675Mouldable Strip PasteSequential Comp. PumpToilet Safety Frame10.201,250430181721001914854430.004050202494325.605601820Weeks per annum:52.14Holding cost (%)Ordering cost (€)1550 1. Prepare a spreadsheet-based ABC analysis of usage value.Classify as follows:A items: top 20 per cent of usage valueB items: next 30 per cent of usage valueC items: remaining 50 per cent of usage valueYou will need to plot cumulative usage value against the percentage of the samplerepresented by that cumulative usage value. Note that you are working with asample of 20 inventory items, and so each item in the sample represents 5% of thetotal.2. Calculate the inventory weeks for each item, for each classification, and forall the items in total. Does this suggest that the Operations Manager's estimateof inventory weeks is correct? If so, what is your estimate of the overallinventory at the end of the base year, and how much might that have increasedduring the year?In case you are unfamiliar with the term, "Inventory weeks", it is the number of weeksof inventory, at current consumption rates, that we hold right now. You have lastyear's sales for each item, and you have the current stock levels, so you can workthis figure out quite easily.

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Sample Cat. ref. Sales Unit Description Last 12 mo. Inventory as Reorder sales (units) at last year Quantity end (units) (Units) 1,000 Sales Unit number Cost (€) number 11036 2.40 Disposable Aprons (10pk) Ear-loop Masks(Box) Drill Type 164 Disposable Gloves Large 150ml Syringe Intubation Tube (Adult) Pocket Organiser Blue CPAP Consumable Kit 100,000 60,000 2 11456 3.60 1.10 120 1,000 11563 220 420 250 8,500 10,000 100 12054 3.50 35,400 11.30 97.40 12372 430 120 12774 12979 6,500 20 20 7 7.00 120 160 500 13063 187.00 400 10 Zinc Oxide Tape Stethoscope Head Disp. Latex Catheter Roll-up Wheelchair Ramp 13236 1.50 1,260 50 10 13454 6.25 10 16 25 11 13597 0.60 3,560 12 20 12 13999 152.50 12 44 50 1.40 12.00 13 14068 LFT Tube 22,500 10,500 8,000 14 14242 Cervical Collar 140 24 20 Head Wedge Three-Wheel Scooter 15 14310 89.00 44 2 10 14405 14456 755.00 80.40 16 14 17 Neonatal Trach. Tube 268 6 100 Mouldable Strip Paste Sequential Comp. Pump Toilet Safety Frame 18 14675 10.20 1,250 172 100 19 14854 430.00 430 40 50 20 24943 25.60 560 18 20 Weeks per annum: 52.14 Holding cost (%) Ordering cost (€) 15 50