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Problem on ABC Analysis of Inventory:
The ABC Analysis of Inventory divides inventory into three classes:
Class A - high annual dollar volume
Class B - medium annual dollar volume
Class C - low annual dollar volume.
Describe how you would go about in classifying the inventories in a fast food restaurant. What items would go into each Class?
Why does volatility of demand have a higher effect on a service delivery system than on a manufacturing system?
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