Case Questions If you were employed by the consulting firm, how would you construct your method of analysis?What criteria would you use?What would the cut-off levels be? Be sure to provide explanation

Case Questions If you were employed by the consulting firm, how would you construct your method of analysis?What criteria would you use?What would the cut-off levels be? Be sure to provide explanation
MAQ Corporation “Rene Corp. Ltd., a major producer of consumer electronics equipment, is currently faced with a rapidly growing product line and its associated inventory problems. Rene’s CEO, Abimbola Adebayo, decided to start a program to analyse the company’s inventory requirements utilizing different inventory techniques. The first phase of this program consists of an ABC analysis of the company’s product line (shown in the following table). Mr. Adebayo has encountered difficulties in deciding on the appropriate criteria to use in the classification and in developing appropriate cut-off levels for each class of inventory. To solve his dilemma, Mr. Adebayo has contracted the services of a logistics consulting firm to perform the inventory analysis.”  Sales Data (One-year Period) PRODUCT # Unite Sold Price Per Unit ($) Profit Per Unit ($) SR101 14000 245 60 SR103 700 1550 320 SR105 1500 620 90 SR201 40 2300 860.50 SR203 10 3500 1650 SR205 9350 510 120 SR301 750 650 195 SR303 600 710 198 SR305 3200 930 302.60 SR500 120 1200 442