Alpha Products, Inc., is having a problem trying to control inventory. There is insufficient time to devote to all its items equally. The following is a sample of some items stocked, along with the annual usage of each item expressed in dollar volume:

Item Annual Dollar Usage Item Annual Dollar Usage a $ 7,000 k $80,000 b 1,000 l 400 c 14,000 m 1,100 d 2,000 n 30,000 e 24,000 o 1,900 f 68,000 p 800 g 17,000 q 90,000 h 900 r 12,000 i 1,700 s 3,000 j 2,300 t 32,000

a. Can you suggest a system for allocating control time?

b. Specify where each item from the list would be placed.

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