1. The manager of an automobile repair shop hopes to achieve a better allocati

1. The manager of an automobile repair shop hopes to achieve a better allocation of inventory
control efforts by adopting an A-B-C approach inventory control.

a. Given the monthly usages in the following table classify the items in A B and C
categories according to dollar usages:

Item Annual Unit

Number Demand x Cost

4021 90 1400

9402 300 12

4066 30 700

6500 150 20

9280 10 1020

4050 80 140

6850 2000 10

3010 400 20

4400 5000 5

b. Determine the percentage of items in each category and the annual dollar value for each
category.