Problemboreki enterprise has the following 10 items in, Ask an Expert

Management Studies

Problem:

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

Required:

Question 1) Develop an ABC classification system for the 10 items.

Question 2) How can Boreki use this information?

Question 3) Boreki reviews the classification and then places item A2 into the A category. Why might he do so?

Solve the given numerical problem and illustrate step by step calculation.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91162641

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