Given the monthly usages in the following table, classify the items in A, B, and

percentage of items in each category and the annual dollar value for e
A items are counted monthly (every 20 working days), all B items are counted
counted semiannually (every 120 work days). How many items need to be co

Item Usage Unit Cost

4021 50 $1,400
9402 300 12
4066 40 700
6500 150 20
9280 10 1,020
4050 80 140
6850 2,000 15
3010 400 20
4400 7,000 5

The following table contains figures on the monthly volume and unit costs for a ra
16 items from a list of 2,000 inventory items at a health care facility:
Develop an A-B-C classification for these items.
How could the manager use this information?
After reviewing your classification scheme, suppose that the manager decides to
into the A category. What are some possible explanations for this decision?

Item Unit Cost Usage

A K34 $10 200
B K35 25 600
K36 36 150
M10 16 25
M20 20 80
Z45 80 200
F14 20 300
F95 30 800
F99 20 60
D45 10 550
D48 12 90
D52 15 110
D57 40 120
N08 30 40
P05 16 500
P09 10 30

L. Houts Plastics is a large manufacturer of injection moulded plastics in Noth

manufacturing facility is Charlotte yields the information presented in the Table
according to an ABC classification system?

Average inventory
Item code # Value $/unit
units
6782 20 1.15
2363 75 1.50
2394 60 1.75
8210 8 1.80
2395 30 2.00
7844 12 2.05
2349 120 2.50
9111 6 3.00
1289 400 3.75
2347 300 4.00
Boreki Enterprise has the following 10 items in inventory. Theodore Boreki as
classifications. What do you report back?
a) Develop an ABC classification system for the 10 items
b) How can Boreki use this information?

Item Annual demand Cost/Unit

A2 3,000 50
B8 4,000 12
C7 1,500 45
D1 6,000 10
E9 1,000 20
F3 500 500
G2 300 1,500
H2 600 20
I5 1,750 10
J8 2,500 5

Lindsay Electronics, a small manufacturer of electronic research equipment, has approxim

manage its inventory. Joan has determined that 10% of the items in inventory are A items,
system in which all A items are counted monthly (every 20 working days), all B items are c
semiannually (every 120 work days). How many items need to be counted each day?

Total
% items Class No. of items
items
7000 10 A 700
35 B 2450
55 C 3850
Total 7000
assify the items in A, B, and C categories according to dollar usage. Determine the
annual dollar value for each category.
ys), all B items are counted quarterly (every 60 working days), and all C items are
many items need to be counted each day?

olume and unit costs for a random sample of

h care facility:

hat the manager decides to place item P05

ons for this decision?
n moulded plastics in Noth Caolina. An investigation of the company's
ation presented in the Table below. How would the plant classify these items
entory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC

items

earch equipment, has approximately 7,000 items in its inventory and has hired Joan Blasco-Paul to
items in inventory are A items, 35% are B items, and 55% are C items. She would like to set up a
working days), all B items are counted quarterly (every 60 working days), and all C items are counted
d to be counted each day?

Items
Items counted per
No. of days counted per
day (Rounded)
day
20 35 35
60 40.83333333 41
120 32.08333333 33
 Total Items
counted per
day
ne the

s are
s into ABC

o-Paul to
set up a
re counted