Develop an abc classification system for the items

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Reference no: EM131356358

Boreki Enterprises has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classifications.

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: EM131356358

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