Read through the "supplier4medics.com" case study, review guidance doc, and complete the case template (powerpoint) answering the following questions:
1- Prepare a spreadsheet-based ABC analysis of Usage Value. Classify as follows:
A-Items: top 20% of Usage Value
B-Items: next 30% of Usage Value
C-Items: remaining 50% of Usage Value.
2-Calculate the inventory weeks for each item, for each classification, and for all the items in total. Does this suggest that the OMs estimate of inventory weeks is correct?
3-If so, what is your estimate of the overall inventory at the end of the base year, and how much might that have increased during the year?
4-Based on the sample, analyze the underlying causes of the availability problem described in the text.
5-Calculate the Economic Order Quantities (EOQs) for the A Items.
6-What recommendations would you give to the company?
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