
Concept explainers
Problem 12.1
L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification system? (Round
dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.)
L. Houts Plastics Charlotte Inventory Levels
Item Code
Avg. Inventory (units)
Value
($/unit)
Dollar
Volume
% of Dollar Volume
1289
380
3.75
nothing
nothing
2347
300
4.00
1 comma 200
36.32
2349
120
2.50
300
9.08
2363
75
1.80
nothing
nothing
2394
60
1.75
105
3.18
2395
25
1.75
nothing
nothing
6782
20
1.15
23
0.70
7844
12
2.05
25
0.74
8210
10
1.60
nothing
nothing
8310
7
2.00
14
0.42
9111
6
3.00
18
0.54
3 comma 304
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