Question $2\mathrm{.}5$

When applied to inventory management, Pareto analysis is commonly known as ABC

analysis in which the inventory items are classified into A$,$ B and C items. Suppose ten

different items are currently kept in stock, and their unit cost and annual usage are

summarized in Table $2\mathrm{.}15$ below. Conduct an ABC analysis and classify them according to

their annual dollar usage.

Table $2\mathrm{.}15$ Unit cost and annual usage of ten different items kept in stock