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.