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David Alexander has compiled the following table of six items in inventory at Angelo Products, along with the unit cost and the annual demand in
David Alexander has compiled the following table of six items in inventory at Angelo Products, along with the unit cost and the annual demand in units:
IDENTIFICATION CODE | UNIT COST ($) | ANNUAL DEMAND (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 |
Use ABC analysis to determine which item(s) should be carefully controlled using a quantitative inventory technique and which item(s) should not be closely controlled.
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