Question 3

From ABC analyses the item divide into 3 groups depend on the percentage and category by the annual demand from higher to lower value. Total of the all annual demands is 6124582. Group A have 8 items that is item 18, 13, 20, 12, 4, 2, 15 and 1 with total percent 80.98%. The higher percent is item 18 with 23.39% and the lower percent at group A is item 1 with 4.08%. Group B start with item 5, 14, 11, 17 and 16. This group has 5 items with total percent 14.76%.The higher percent of this group is item 5 with 4.08% and the lower percent is item 16 with 2.04%. Group C have 7 items that is item 8, 6, 3, 19, 9, 10 and 7. This group contains total percent 4.26%. The higher percent is item 8 with 1.37% and the lower percent at this group is item 7 with 0.04%.