Boreki Enterprise has the following 10 items in inventory. CEO Theodore Boreki asks you to divide these items into an ABC classification:
Item Annual Demand Cost/Unit
A2 3,000 $50
B8 4,000 $12
C7 1,500 $45
D1 6,000 $10
E9 1,000 $20
F3 500 $500
G2 300 $1,500
H2 600 $20
I5 1,750 $10
J8 2,,500 $5
A) Develop an ABC classification system for the 10 items.
B) How can Boreki use this information?
C) Boreki reviews the classification and then places item A2 into the A category. Why might he do so?