Question: A company would like to classify its inventory systems using ABC inventory classification system. The rules for ABC classification are STRICTLY applied such that 80%

A company would like to classify its inventory
A company would like to classify its inventory systems using ABC inventory classification system. The rules for ABC classification are STRICTLY applied such that 80% cumulative budget is assigned to A class inventory items. The next 15% cumulative budget is assigned to B class inventory items, and only 5% of the cumulative budget is assigned to C class inventory items. The inventory items (SKU) are SKU 1, SKU2, SKU3, and SKU4 respectively. The Annual demands (units per year) for these items are 290, 457, and 159, and 577 respectively. Also, the corresponding per unit prices are 19, 33, 126, and 90 respectively measured in OMR. Which items (among, SKU1, SKU2, SKU3, and SKU4) are classified as A class inventory Select one: O a. Both SKU3 and SKU4 b. All items O c. SKU1 only d. None is correct O e. Only SKU3

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