912.2 Boreki Enterprises has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classifications. ITEM ANNUAL DEMAND COST/UNIT A2 3,000 $50 Bs 4,000 12 a7 1,500 45 D1 6,000. 10 EQ 1,000 20 F3. 500 500 G2 300 1,500 H2 600 20 15 1,750 10 J3 2,500, 5 a) Develop an ABC classification system for the 10 items. b) How can Boreki use this information? c) Boreki reviews the classification and then places item A2 into the A category. Why might he do so? Px* 12.4 The South African company AFROS sells safety equipment to from their central warehouse in Johannesburg. AFROS apply an annual counting of the inventories, approxi- mately 55.000 articles. The supply manager is not satisfied with the record accu- racy and has decided to increase the stock-counting. Maximum 1.100 articles can be counted per day. 20% of the articles rep- resent 80'% of the inventory value, A-items. Her decision is to introduce cyclic counting whereA-items should be counted once per month, B-items once every third month and C-items once per 6 months. What is maximum number of articles that can be classified as B-items? Assume 20 working days per month.** 42.26 M.P. VanOyen Manufacturing has gone out on bid for aregulator component. Expected demand is 700 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering cost is $50, and annual holding cost per unit is $5. Pees Ea Ui ites (QUANTITY Pras ia ace NIT PRICE $16.00 1-399 $16.10 15.50 400-799 15.60 800+ 15.10 a) What is the economic order quantity? b) Which supplier should be used? Why? c) What is the optimal order quantity and total annual cost of ordering, purchasing, and holding the component? PX: