Question: 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 (see below).
How would the plant classify these items according to an ABC classification system?
| Item Code # |
Average Inventory
(units) |
Value ($/unit) |
|
|
|
| 1289 |
400 |
$3.75 |
| 2347 |
300 |
$4.00 |
| 2349 |
120 |
$2.50 |
| 2363 |
75 |
$1.50 |
| 2394 |
60 |
$1.75 |
| 2395 |
30 |
$2.00 |
| 6782 |
20 |
$1.15 |
| 7844 |
12 |
$2.05 |
| 8210 |
8 |
$1.80 |
| 8310 |
7 |
$2.00 |
| 9111 |
6 |
$3.00 |