Boreki

has

$3,000$

$4,000$

$1,500$

$6,000$

$1,000$

$500$

$300$

$600$

$1,750$

$2,500$

the

in

Enterprises

following

$10$ items$$ITEM$$ANNUAL DEMAND$$COST$/$UNIT$$A$2$

B$8$

C$7$

D$1$

E$9$

F$3$

G$2$

H$2$

I$5$

J$8$

$ $50$

$12$

$45$

$10$

$20$

$500$

$1,500$

$20$

$10$

$5$a$)$ Develop an ABC classification system for the $10$ items.

b$)$ How can Boreki use this information?

c$)$ Boreki reviews the classification and then places item A$2$ into

the A category. Why might he do so$?$ PX