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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?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92169219

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