Question: 41. Alpha Products, Inc., is having a problem trying to control inventory. There is insufi cient time to devote to all its items equally. Here

41. Alpha Products, Inc., is having a problem trying to control inventory. There is insufi cient time to devote to all its items equally. Here is a sample of some items stocked, along with the annual usage of each item expressed in dollar volume.

ITEM ANNUAL DOLLAR USAGE ITEM ANNUAL DOLLAR USAGE a $ 7,000 k

a. Can you suggest a system for allocating control time?

b. Specify where each item from the list would be placed.

ITEM ANNUAL DOLLAR USAGE ITEM ANNUAL DOLLAR USAGE a $ 7,000 k $80,000 b 1,000 I 400 1,100 f g d 14,000 2,000 24,000 68,000 17,000 h 900 ECODOL 30,000 1,900 800 90,000 12,000 1,700 S 3,000 2,300 t 32,000

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