Boreki Enterprises has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classifications.

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? lop5