QUESTION 3 Given the following inventory information, construct an (a) ABC analysis by annual dollar usage, (b) ABC analysis by current inventory value, and (c) an ABC inventory matrix. Is the firm stocking the correct inventories? Item Number Unit Cost Annual Usage Phy Inv B8867 6 100 8,000 J1252 5.25 6,500 120 K9667 0.88 4,000 1,000 L2425 1 1,500 375 M4554 5.5 2,000 500 T6334 70 500 800 W9856 0.75 800 20,000 X2215 1.5 8,000 2,000 Y3214 32 1,000 500 Y6339 4 3,500 125 Calculate the annual usage for K9667
QUESTION 3 Given the following inventory information, construct an (a) ABC analysis by annual dollar usage, (b) ABC analysis by current inventory value, and (c) an ABC inventory matrix. Is the firm stocking the correct inventories? Item Number Unit Cost Annual Usage Phy Inv B8867 6 100 8,000 J1252 5.25 6,500 120 K9667 0.88 4,000 1,000 L2425 1 1,500 375 M4554 5.5 2,000 500 T6334 70 500 800 W9856 0.75 800 20,000 X2215 1.5 8,000 2,000 Y3214 32 1,000 500 Y6339 4 3,500 125 Calculate the annual usage for K9667
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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QUESTION 3
Given the following inventory information, construct an (a) ABC analysis by annual dollar usage, (b) ABC analysis by current inventory value, and (c) an ABC inventory matrix. Is the firm stocking the correct inventories?
| Item Number | Unit Cost | Annual Usage | Phy Inv |
| B8867 | 6 | 100 | 8,000 |
| J1252 | 5.25 | 6,500 | 120 |
| K9667 | 0.88 | 4,000 | 1,000 |
| L2425 | 1 | 1,500 | 375 |
| M4554 | 5.5 | 2,000 | 500 |
| T6334 | 70 | 500 | 800 |
| W9856 | 0.75 | 800 | 20,000 |
| X2215 | 1.5 | 8,000 | 2,000 |
| Y3214 | 32 | 1,000 | 500 |
| Y6339 | 4 | 3,500 | 125 |
Calculate the annual usage for K9667.
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