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:

Point Estimate

A single value (or point) that serves as the best guess or best estimate of a population parameter (like the mean or proportion).

Point Estimate

A single value or statistic used to estimate a population parameter.

Proportion

A statistical measure that reflects the fraction or percentage of the total number of items or cases that fall within a certain category or exhibit a particular attribute.