A company produces bicycles with various raw material components. Each component has a number of uses/year and price/component. The component list can be found in Table 1. a) Determine the ABC category for each of these components. b) What kind of treatment is appropriate for each category?

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J
usage/year
5000
1500
10000
6000
7500
6000
unit price
1500
8000
10500
2000
500
13600
A company produces bicycles with various raw material components. Each component has a number of uses/year and
price/component. The component list can be found in Table 1.
a) Determine the ABC category for each of these components.
b) What kind of treatment is appropriate for each category?
Transcribed Image Text:Item 1 2 3 4 5 6 Show Transcribed Text J usage/year 5000 1500 10000 6000 7500 6000 unit price 1500 8000 10500 2000 500 13600 A company produces bicycles with various raw material components. Each component has a number of uses/year and price/component. The component list can be found in Table 1. a) Determine the ABC category for each of these components. b) What kind of treatment is appropriate for each category?
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