1. Perform an A-B-C classification of inventory analysis on the inventory items shown below. How would you use your classification in practice?

Item	Annual Demand	Unit Cost
AA	700	100
AAB	1107	250
AAS	654	110
BGT	606	112
BHY	1099	113
C	978	26
CCDFG	583	122
CDE1	1200	200
DDE1	1500	130
DDE	510	60
DDS	797	120
DER	1085	40
DET	849	58
GGO	672	30
GGR	1088	110
GTY	700	150
HJUI	779	149
IOP	1546	455
KLI	2500	177
LLQ	1053	90
NNBG	1120	10
POR	628	170
QRT	1066	27
QWE	262	44
QWI	535	34
RTT	3000	1100
SDE	918	130
SDF	960	112
SET	1030	35
TRW	451	22
TYU	950	79
VCD	1170	58
WER	750	107
WWQ	880	29
WWR	221	80
XAE	1100	130
XCV	1207	29
XXA	2000	200
XXC	216	60
XYZ	207	200
YII	385	190
ZXA	400	83