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Given the following inventory information, construct an (a) ABC analysis by annual dollar usage, (b) ABC analysis by current inventory value, (c) ABC inventory matrix. is the firm stocking the correct inventories.

Item Number                Unit cost ($)             Annual usage (units)          Current Inventory (Units)

B8867                               6.00                           100                                          8,000

J1252                               5.25                           6,500                                       120

K9667                               0.25                           4,000                                       1,000

L2425                               1.00                           1,500                                        375

M4554                              5.50                            2,000                                       500

T6334                               70.00                          500                                          800

W9856                               0.75                           800                                       20,000

X2215                                1.50                           8,000                                     2,000

Y3214                                32.00                         1,000                                        500

Y6339                                 4.00                           3,500                                        125

Operation Management, Management Studies

  • Category:- Operation Management
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