• • 12.6 Lynn Fish opened a new beauty-products retail store.

There are numerous items in inventory, and Lynn knows that there are costs associated with inventory. However, because her time is limited, she cannot carefully evaluate the inventory policy for all products. Lynn wants to classify the items according to dollars invested in them. The following table provides information about the 10 items that she carries:

Use ABC analysis to classify these items into categories A, B, and C

Transcribed Image Text:

ITEM NUMBER UNIT COST DEMAND (UNITS) E102 $4 800 D23 $8 1,200 D27 $3 700 ROZ $2 1,000 R19 $8 200 S107 $6 500 S123 $1 1,200 U11 $7 800 U23 $1 1,500 V75 $4 1,500