Alpha Products, Inc., is having a problem trying to control inventory. There is insuffi 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

b c

d e

f g

h i

j

$ 7,000 1,000 14,000 2,000 24,000 68,000 17,000 900 1,700 2,300 k

l m

n o

p q

r s

t

$80,000 400 1,100 30,000 1,900 800 90,000 12,000 3,000 32,000

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

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