6-39 Ralph Janaro simply does not have time to analyze all of the items in his company’s inventory. As a young manager, he has more important things to do. The following is a table of six items in inventory along with the unit cost and the demand in units.

(a) Find the total amount spent on each item during the year. What is the total investment for all of these?

(b) Find the percentage of the total investment in inventory that is spent on each item.

Identification Code Unit Cost ($)
Demand in Units XX1 5.84 1,200 B66 5.40 1,110 3CPO 1.12 896 33CP 74.54 1,104 R2D2 2.00 1,110 RMS 2.08 961

(c) Based on the percentages in part (b), which item(s) would be classified in categories A, B, and C using ABC analysis?

(d) Which item(s) should Ralph most carefully control using quantitative techniques?