Southern Markets, Inc., is considering the use of ABC analysis to focus on the most critical SKUs
Question:
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 Citems.
Transcribed Image Text:
SKU Code A104 D205 X104 U404 L205 S104 X205 し104 Unit Value $2.10 $2.50 $0.85 $0.25 $4.75 Demand (Units) 2,500 30 350 250 20 4.000 1,020 50 $0.35 $4.25
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Southern Markets Inc a Typically we expect A items to account for 20 of the items and 80 of the tota...View the full answer
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Related Book For
Operations Management Processes and Supply Chains
ISBN: 978-0132807395
10th edition
Authors: Lee J. Krajewski, Larry P. Ritzman, Manoj K. Malhotra
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