The finished goods inventory of a small manufacturing company is shown below (available in Worksheet IND7 of file Data for Module 7). Perform an ABC analysis on the data (Assign A items to a maximum of 70 % of the cumulative value and B items to a maximum of the next 20% of the cumulative value (a total of 90%).)
a) How many items are assigned as “A” items?
b) How many items are assigned as “B” items?
c) How many items are assigned as “C” items?
d) What assignment was made to the following items: 2456? 5995? 8989? 9034? SKU Code Unit Value Demand (units)
1021 $ 125.00 100
1204 $ 10.00 1,750
1448 $ 12.00 2,000
2144 $ 20.00 200
2282 $ 17.00 330
2456 $ 500.00 675
2698 $ 25.00 85
3129 $ 5.00 2,500
3141 $ 2.00 1,000
3310 $ 1.00 1,500
3312 $ 0.75 625
3712 $ 8.00 200
3943 $ 1.50 125
4351 $ 0.75 410
4682 $ 3.00 700
4683 $ 1.00 1,200
4991 $1,500.00 320
5231 $ 20.00 600
5940 $ 110.00 120
5995 $ 50.00 1,500
6466 $ 0.90 200
6912 $ 8.00 1,200
7006 $ 45.00 1,700
7060 $ 3.00 300
7087 $ 4.00 800
7670 $ 2.00 75
8101 $ 10.00 6,000
8447 $ 7.00 800
8989 $ 6.00 500
9034 $ 4.00 1,500