Alpha Products, Inc., is having a problem trying to control inventory. There is insufficient time to devote all its items equally. Here is a sample of some items stocked, along with the annual usage of each item expressed in dollar volume.
Use an ABC inventory analysis.
ITEM ANNUAL DOLLAR USAGE ITEM ANNUAL DOLLAR USAGE
a $7,000 k $80,000
b 1,000 l 400
c 14,000 m 1,100
d 2,000 n 30,000
e 24,000 o 1,900
f 68,000 p 800
g 17,000 q 90,000
h 900 r 12,000
i 1,700 s 3,000
j 2,300 t 32,000
Can you suggest a system for allocating control time?
Specify where each time from the list would be placed.