Given the Information Below, Conduct an ABC Analysis and Suggest

question 5

Essay

Given the information below, conduct an ABC analysis and suggest which items should be classified as A, B and C.
$$\begin{array} { c c c } \text { SKU } & \text { Annual Usage } & \text { Item Value \$) } \\\hline1& 9,000 & 80.00 \\2 & 12,000 & 58.80 \\3 & 24,000 & 76.20 \\4 & 42,000 & 48.00 \\5 & 55,000 & 30.00 \\6 & 140,000 & 2.20 \\7 & 33,000 & 48.00 \\8 & 3,000 & 110.00\end{array}$$

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Definitions:

Largest Exporter

The country or entity that ships the largest volume of goods to international markets compared to others.

Automobile Producers

Companies or firms involved in the design, manufacturing, and/or marketing of cars.

China

A country located in East Asia, known for being the world's most populous country and for its significant economic, cultural, and political influence globally.

Equity

In finance, equity represents the ownership interest in a company or property, often measured as the difference between the value of the assets and the liabilities.