Reference no: EM132686471

AAU is considering doing an ABC analysis of its entire inventory but has decided to test the technique on a small sample of 15 of its SKUs. The annual usage and unit cost for these items are shown in the table.

(a) Calculate the annual dollar volume for each item.

(b) Group the items into classes.

(c) Give % of $ and % of items for each class.

Item | Unit $ Value | Annual Usage (in units)

101 12 80
102 50 10
103 15 50
104 50 40
105 40 80
106 75 220
107 4 250
108 1.5 400
109 2 250
110 25 500
111 5 450
112 7.5 80
113 3.5 250
114 1 1200
115 15 300