Boreki Enterprise has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classification.

(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 into the A category. Why might he doso?

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Cost/Unit Annual Demand 3,000 4,000 ,500 6,000 1,000 500 300 600 1,750 2,500 item A2 B8 $ 50 45 DI E9 F3 G2 H2 15 J8 20 500 1,500 20 10