Boreki enterprise has the following 10 items in inventory, Operation Management

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Boreki enterprise has the following 10 items in inventory

Boreki Enterprise has the following 10 items in inventory. CEO Theodore Boreki asks you to divide these itmes in 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

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 in to A category. Why might he do so?

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Operation Management: Boreki enterprise has the following 10 items in inventory

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Operation Management: Boreki enterprise has the following 10 items in inventory

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