tultul_gis
New member
- Joined
- Feb 11, 2011
- Messages
- 20
ABC Enterprise has the following 10 items in inventory. The CEO asks you, a recent OM
graduate, to divide these items into ABC classifications.
ITEM ANNUAL
DEMAND COST/UNIT
A2 3000 $50
B8 4000 12
C7 1500 45
D1 6000 10
E9 1000 20
F3 500 500
G2 300 1500
H2 600 20
I5 1750 10
J8 2500 5
(a) Develop an ABC classification system for the 10 items.
(b) The CEO reviews this information and then places item A2 into the A category. Why might
he do this?
graduate, to divide these items into ABC classifications.
ITEM ANNUAL
DEMAND COST/UNIT
A2 3000 $50
B8 4000 12
C7 1500 45
D1 6000 10
E9 1000 20
F3 500 500
G2 300 1500
H2 600 20
I5 1750 10
J8 2500 5
(a) Develop an ABC classification system for the 10 items.
(b) The CEO reviews this information and then places item A2 into the A category. Why might
he do this?