Question: Item Annual Demand Ordering Cost ($) Holding Cost (%) Unit Price ($) 101 600 10 20 0.50 102 1,600 10 30 0.20 103 5,100 25

Item Annual Demand Ordering Cost ($) Holding Cost

Item Annual Demand Ordering Cost ($) Holding Cost (%) Unit Price ($) 101 600 10 20 0.50 102 1,600 10 30 0.20 103 5,100 25 30 1.00 104 320 15 25 4.50 105 1,600 35 35 1.20 201 10,100 25 15 0.75 202 1,100 10 20 1.35 203 1,600 20 25 0.20 204 600 40 25 0.80 205 120 10 15 2.50 (a) Calculate the annual usage cost of each item. (b) Classify the items as A, B, or C. Item Annual Usage ($) Item Classification 101 102 103 104 105 201 202 203 204 205

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