In the past, Taylor Industries has used a fixed-time periodinventory system that

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In the past, Taylor Industries has used a fixed-time periodinventory system that involved taking a complete inventory count ofall items each month. However, increasing labor costs are forcingTaylor Industries to examine alternative ways to reduce the amountof labor involved in inventory stockrooms, yet without increasingorder costs, such as shortage costs. Here is a random sample of 20Taylor's items.

Item#                        Annualusage            Item#             Annual usage
1       $1,500    11       $13,000
2       12,000    12       600
3       2,200       13       42,000            
4                                 50,000                      14                             9,900
5                                 9,600                        15                              1,200
6                                   750                      16                              10,200
7                                 2,000                        17                                4,000
8                                 11,000                      18                              61,000
9                                     800                      19                                3,500
10                               15,000                      20                                2,900

what would you recommend Taylor to do to cut back its labor cost?Please illustrate using an ABC plan)

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