Question: Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from its supplier ( Class

Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from its supplier (Class A items), those that will be controlled using a continuous review system (B items), and those that will be held in a two-bin system (C items). The following table shows the annual dollar usage for a sample of eight SKUs. Rank the SKUs, and assign them to their appropriate category. SKU Unit Cost Count
1 $3.00500
2 $0.0218000
3 $0.7510000
4 $40.0075
5 $0.0520000
6 $0.153000
7 $0.45150000

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