Boreki Enterprise has the following 10 items in inventory. Theodora Boreki asks you, a recent OM...

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Boreki Enterprise has the following 10 items in inventory. Theodora Boreki asks you, a recent OM graduate, to divide these items into ABC classifications. a) You decide that the top 20% of the 10 items, based on a criterion of demand multiplied by cost per unit, should be A items, the next 30% should be B items, and the remaining 50% should be C items. Develop an ABC classification system for the following 10 items. (Round Demand x Cost to the nearest whole number.) b) How can Boreki use this information? Item A2 B8 C7 D1 E9 F3 G2 H2 15 J8 O B. O C. Annual Demand Cost/Unit Demand x Cost Classification 10 20 5 1,500 10 500 45 50 20 12 1,750 600 2,500 300 6,000 500 1,500 3,000 1,000 4,000 12,000 12,500 60,000 67,500 150,000 48,000 ▼ V D ▼ O A. Boreki can use this information to manage her A and B items more closely and to save ordering costs on her less important C items by ordering only when A or B items are being ordered from the same supplier. Boreki can use this information to manage all her items more closely. No one item is more important than another, so she is free to order any items she desires so long as they are from the same supplier. Boreki can use this information to manage her C items more closely and to save ordering costs on her less important A and B items by ordering only when C items are being ordered from the same supplier. O D. Boreki can use this information to manage her A and B items more closely and to save ordering costs by ordering all items simultaneously from the same supplier. c) Boreki reviews the classification and then places item H2 into the A category. Why might she do so? O A. H2 could easily move to the A category based on annual dollar volume (Demand x Cost). In a small sample, 30% of the items can be placed in the A category if deemed appropriate. O B. H2 could easily move to the A category based on annual dollar volume (Demand x Cost). In a small sample, 50% of the items can be placed in the A category if deemed appropriate. O C. H2 could still be an important item despite its relatively poor ranking. Boreki might have some information on H2 that was not available to you when you were creating your ABC classification. O D. H2 should move to the A category because at least 3 items should always be present in the A category. Boreki Enterprise has the following 10 items in inventory. Theodora Boreki asks you, a recent OM graduate, to divide these items into ABC classifications. a) You decide that the top 20% of the 10 items, based on a criterion of demand multiplied by cost per unit, should be A items, the next 30% should be B items, and the remaining 50% should be C items. Develop an ABC classification system for the following 10 items. (Round Demand x Cost to the nearest whole number.) b) How can Boreki use this information? Item A2 B8 C7 D1 E9 F3 G2 H2 15 J8 O B. O C. Annual Demand Cost/Unit Demand x Cost Classification 10 20 5 1,500 10 500 45 50 20 12 1,750 600 2,500 300 6,000 500 1,500 3,000 1,000 4,000 12,000 12,500 60,000 67,500 150,000 48,000 ▼ V D ▼ O A. Boreki can use this information to manage her A and B items more closely and to save ordering costs on her less important C items by ordering only when A or B items are being ordered from the same supplier. Boreki can use this information to manage all her items more closely. No one item is more important than another, so she is free to order any items she desires so long as they are from the same supplier. Boreki can use this information to manage her C items more closely and to save ordering costs on her less important A and B items by ordering only when C items are being ordered from the same supplier. O D. Boreki can use this information to manage her A and B items more closely and to save ordering costs by ordering all items simultaneously from the same supplier. c) Boreki reviews the classification and then places item H2 into the A category. Why might she do so? O A. H2 could easily move to the A category based on annual dollar volume (Demand x Cost). In a small sample, 30% of the items can be placed in the A category if deemed appropriate. O B. H2 could easily move to the A category based on annual dollar volume (Demand x Cost). In a small sample, 50% of the items can be placed in the A category if deemed appropriate. O C. H2 could still be an important item despite its relatively poor ranking. Boreki might have some information on H2 that was not available to you when you were creating your ABC classification. O D. H2 should move to the A category because at least 3 items should always be present in the A category.

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ANSWER a Based on the given criteria of demand multiplied by cost per unit I have divided the 10 ite... View the full answer