Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their 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. Fill in the blanks for annual dollar usage below. (Enter your responses rounded to the nearest whole number.)

SKU Dollar Value Annual Usage 1 $0.30 60,000 2 $0.02 125,000 3 $0.02 1,300 4 $0.90 400 5 $1.00 35,000 6 $1.40 200 7 $0.35 90 8 $4.30 900

1. Determine annual usage in terms of dollars,

2. Rank the items from highest to lowest based on annual sales dollars values

3. Determine the percentage of the total sales by item and cumulative percentage of total sales

4. Classify the item into ABC categories. A: 0%-80%, B: 90%-90%, C for the rest.