Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
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Chapter 12, Problem 2P

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
  1. a. Develop an ABC classification system for the 10 items.
  2. b. How can Boreki use this information?
  3. c. Boreki reviews the classification and then places item A2 into the A category. Why might he do so?
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Chapter 12 Solutions

Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)

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