Develop an abc classification system

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Reference no: EM13218610

Boreki Enterprise has the following 10 items in inventory. CEO Theodore Boreki asks you to divide these items into an ABC classification:

Item Annual Demand Cost/Unit

A2 3,000 $50

B8 4,000 $12

C7 1,500 $45

D1 6,000 $10

E9 1,000 $20

F3 500 $500

G2 300 $1,500

H2 600 $20

I5 1,750 $10

J8 2,,500 $5

A) Develop an ABC classification system for the 10 items.

B) How can Boreki use this information?

C) Boreki reviews the classification and then places item A2 into the A category. Why might he do so?

Reference no: EM13218610

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