ABC analysis ranks items in an inventory based upon their importance from an inventory management perspective. Parts are classified as A parts, B parts, or C parts. In order to do this we must calculate the

for each inventory item.

Question $2(4$ points$)$

Question $2$ options:

Economic order quantity $($EOQ$)$ for an item is determined by calculating the lowest total annual cost for managing the item. The two annual costs considered in this total cost are:

Question $3(2$ points$)$

Question $3$ options:

The required service level and the standard deviation of demand are used in determining an item$$s

Question $4(6$ points$)$

Name $3$ systems for planning and ordering inventory.