Question: 6. Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their supplier (Class

6. Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their supplier (Class A items), those that will be controlled using a continuous review system (B items), and those that will be held in a two-bin system (Citems). The following table shows the annual dollar usage for a sample of eight SKUs. Rank the SKUs, and assign them to their appropriate category. SKU Code Dollar Value Annual Usage 1,200 1 $0.01 $0.03 120,000 2. 3 $0.45 100 4 $1.00 44,000 5 5 $4.50 900 6 $0.90 350 7 $0.30 70,000 8 $1.50 200
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