Question: Chapter 1 2 ( 6 t h edition ) / Chapter 1 1 ( 7 t h edition ) - Inventory Management [ 1 7

Chapter 12(6th edition)/ Chapter 11(7th edition)-Inventory Management [17 points]
OM Textbook Problems p 478(6th edition)- Question # 3 or p 438(7th edition) Question #22[6 points]
The following table contains the monthly usage and unit costs for a random sample of 15 items from a list of 2,000 inventory items at a health care facility. 102
\table[[Item,Unit Cost,Monthly Usage],[K34,10,200],[K35,25,600],[K36,36,150],[M10,16,25],[M20,20,80],[Z45,80,700],[F14,20,300],[F95,30,800],[F99,20,60],[D45,10,550],[D48,12,90],[D52,15,110],[N57,40,120]]
a. Druelop an A-B-C classiffcation for these items.
b. How could the manager use this information?
c. After reviewing your classiflcation scheme, suppose that the manager decides to place item P05 into the A category. What are some possable explanations for this decision?
Chapter 1 2 ( 6 t h edition ) / Chapter 1 1 ( 7 t

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