Silicon Chips, Inc., maker of superfast DRAM chips, wants to categorize its 10 major inventory items using

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Silicon Chips, Inc., maker of superfast DRAM chips, wants to categorize its 10 major inventory items using ABC analysis.

APPROACH c ABC analysis organizes the items on an annual dollar-volume basis. Shown below (in columns 1–4) are the 10 items (identified by stock numbers), their annual demands, and unit costs

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