Boreki Enterprise has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classifications. Fill in the blanks and then answer the following questions. (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Dollar Volume % of Total Dollar Item Annual Demand Cost/Unit Volume A2 500 300 4000 1500 B8 12 48,000 7.02 C7 45 67,500 9.87 D1 20 35 1000 20,000 E9 20 2.92 F3 34 250 300,000 12,000 43.85 G2 H2 200 600 1500 20 1.75 15 1000 65 J8 2500 12,500 1.83

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### Boreki Enterprise Inventory Analysis

Boreki Enterprise has the following 10 items in inventory. Theodore Boreki has tasked a recent Operations Management (OM) graduate with dividing these items into ABC classifications. The table below presents the data for each item, including calculations for dollar volume and percentage of total dollar volume. (Dollar volume is rounded to the nearest whole number, and percentage of dollar volume to two decimal places.)

| Item | Annual Demand | Cost/Unit | Dollar Volume | % of Total Dollar Volume |
|------|---------------|-----------|---------------|--------------------------|
| A2   | 500           | 300       | 150,000       | 21.92                    |
| B8   | 4000          | 12        | 48,000        | 7.02                     |
| C7   | 1500          | 45        | 67,500        | 9.87                     |
| D1   | 20            | 35        | 700           | 0.10                     |
| E9   | 1000          | 20        | 20,000        | 2.92                     |
| F3   | 34            | 250       | 8,500         | 1.24                     |
| G2   | 200           | 1500      | 300,000       | 43.85                    |
| H2   | 600           | 20        | 12,000        | 1.75                     |
| I5   | 1000          | 65        | 65,000        | 9.50                     |
| J8   | 2500          | 5         | 12,500        | 1.83                     |

**Explanation of Calculations:**

- **Dollar Volume:** Calculated by multiplying the annual demand by the cost per unit for each item.
- **% of Total Dollar Volume:** Calculated by dividing the dollar volume of each item by the total dollar volume for all items combined, then multiplying by 100 to convert to a percentage.

This analysis helps in classifying items into categories such as A, B, and C based on their dollar volume contribution to the total inventory, aiding in effective inventory management strategies.
Transcribed Image Text:### Boreki Enterprise Inventory Analysis Boreki Enterprise has the following 10 items in inventory. Theodore Boreki has tasked a recent Operations Management (OM) graduate with dividing these items into ABC classifications. The table below presents the data for each item, including calculations for dollar volume and percentage of total dollar volume. (Dollar volume is rounded to the nearest whole number, and percentage of dollar volume to two decimal places.) | Item | Annual Demand | Cost/Unit | Dollar Volume | % of Total Dollar Volume | |------|---------------|-----------|---------------|--------------------------| | A2 | 500 | 300 | 150,000 | 21.92 | | B8 | 4000 | 12 | 48,000 | 7.02 | | C7 | 1500 | 45 | 67,500 | 9.87 | | D1 | 20 | 35 | 700 | 0.10 | | E9 | 1000 | 20 | 20,000 | 2.92 | | F3 | 34 | 250 | 8,500 | 1.24 | | G2 | 200 | 1500 | 300,000 | 43.85 | | H2 | 600 | 20 | 12,000 | 1.75 | | I5 | 1000 | 65 | 65,000 | 9.50 | | J8 | 2500 | 5 | 12,500 | 1.83 | **Explanation of Calculations:** - **Dollar Volume:** Calculated by multiplying the annual demand by the cost per unit for each item. - **% of Total Dollar Volume:** Calculated by dividing the dollar volume of each item by the total dollar volume for all items combined, then multiplying by 100 to convert to a percentage. This analysis helps in classifying items into categories such as A, B, and C based on their dollar volume contribution to the total inventory, aiding in effective inventory management strategies.
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