Question: Alpha Products, Inc., is having a problem trying to control inventory. There is insufi cient time to devote to all its items equally. Here is

Alpha Products, Inc., is having a problem trying to control inventory. There is insufi cient time to devote to all its items equally. Here is a sample of some items stocked, along with the annual usage of each item expressed in dollar volume.

a. Can you suggest a system for allocating control time?
b. Specify where each item from the list would beplaced.

ITEM ANNUAL DOLLAR USAGE ITEM ANNUAL DOLLAR USAGE $ 7,000 1,000 14.000 2,000 24,000 68,000 17,000 900 1,700 2,300 $80,000 400 1,100 30,000 1,900 800 90,000 12,000 3,000 32,000 1

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