with a total dollar usage of $10,000,000 per year. a. What would you expect to be the number of SKUs and the total annual dollar usage for A items, B items, and C items at Southern Markets, Inc.? b. The following table provides a random sample of the unit values and annual demands of eight SKUs. Categorize these SKUs as A, B, and C items.
with a total dollar usage of $10,000,000 per year. a. What would you expect to be the number of SKUs and the total annual dollar usage for A items, B items, and C items at Southern Markets, Inc.? b. The following table provides a random sample of the unit values and annual demands of eight SKUs. Categorize these SKUs as A, B, and C items.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter3: Introduction To Optimization Modeling
Section: Chapter Questions
Problem 1C
Related questions
Question
Southern Markets, Inc. is considering the use of ABC
analysis to focus on the most critical SKUs in its inventory.
Currently, there are approximately 20,000 different SKUs
with a total dollar usage of $10,000,000 per year.
a. What would you expect to be the number of SKUs and the
total annual dollar usage for A items, B items, and C items
at Southern Markets, Inc.?
b. The following table provides a random sample of the unit
values and annual demands of eight SKUs. Categorize
these SKUs as A, B, and C items.
Transcribed Image Text:SKU Code
Unit Value
Demand (Units)
A104
$0.85
370
D205
$0.03
3,500
X104
$4.35
60
U404
$2.20
2,700
L205
$4.70
25
S104
$2.40
30
X205
$0.23
270
L104
$0.36
1,040
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