Problem 1:

One of BPH's pharmacists wants to establish different levels of inventory control for the following items. Help her classify those items into A, B, and C items.

Item Code	Annual Demand	Unit Price
J365	80	$650.00
K789	100	$12.00
H322	800	$2.00
J541	200	$55.00
J566	150	$10.00
K852	2,000	$5.00
H897	750	$3.00
H453	50	$1,000.00
J856	1200	$4.00
K847	5,000	$3.00

Problem 2:

1. The dietitian at BPH has warned that the meals served at the cafeteria contain too much sodium. For the past 10 days, she has sampled four batches of the "entree du jour" and recorded the sodium content per serving.
2. Based on the data that follows, construct the X and R charts.
3. Based on the X and R charts, is the process in control? Why or why not?
4. Given the fact that the sodium content should be between 450 and 520 mg per serving for meal-type products, does the dietitian have a valid concern? (Assume that the standard deviation is 25 mg.)

Day	Batch 1	Batch 2	Batch 3	Batch 4
1	502	485	516	550
2	495	519	514	480
3	482	516	530	495
4	543	496	402	516
5	475	489	526	502
6	513	489	497	526
7	532	462	523	495
8	495	485	521	505
9	512	523	452	476
10	500	502	513	487