Question

For given ABC analysis the criteria set by the management is All items above 20% of total annual $ value shall be A-items, items between 10% to 20% shall be B-items and items below 10% shall be C-items.

Determine which items shall be A-items?

Item #	Price/unit	Quantity/Year	Annual $ Value	%age annual $ value
102	5	2900	14500
103	10	2000	20000
104	7	1400	9800
105	6	3200	19200
106	10	800	8000
106	12	1100	13200
107	8	1200	9600
	Total		94300

Select one:

a. Items 103 & 106

b. Items 103, 105, 107

c.

Items 105 & 107

d.

Items 103 & 106

e.

Items 103 & 105

Answer 1

e. 103 and 105 items are under A category. As for Item 103 we have a % annual $ value is 21.20% and for item 105 the % annual $ value is 20.36%. Hence the correct option is E