a. The Ajex Company has several of items they store in inventory. The table below shows the

Question:

a. The Ajex Company has several of items they store in inventory. The table below shows the annual demand, and the item cost. Develop a logical classification for the inventory based on ABC:

ITEM ANNUAL USAGE (# units) ITEM COST C34 $12 4000 B99 $23 8000 V94 $19 5500 Н64 $41 1200 P77 $72 400 Y12 $62 1100 R74

b. One additional item, the M22, has a very low usage (300 per year) and a low item cost ($3 per unit), but has a very long lead time and is often difficult to obtain. How should that item be handled and why?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Introduction To Materials Management

ISBN: 978-9386873248

8th edition

Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen

See More Books

Question Posted: Jul 01, 2019 08:41 AM

See More Questions

An SKU has an annual demand of 10,000 units, each costing $15, ordering costs are $80 per order, and the cost of carrying inventory is 25%. Calculate the EOQ in units and then convert to dollars.
The EOQ for an item is 800 units, and the annual usage is 2300 units. What is the period order quantity?
A company stocks an SKU with a weekly demand of 225 units and a lead time of 3 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 175 and the order quantity is 800...
The substitution u=sin(x) is suitable to evaluate the integral cosx sin 3x O True O False
Water droplets in air create rainbows. Describe the physical situation that causes a rainbow. Should you look toward or away from the Sun to see a rainbow? Why is the secondary rainbow fainter than...
Masonrys records show the raw materials inventory had purchases of $1,000 and an ending raw materials inventory balance of $200. If the cost of materials used during the month was $900, what was the...
What is next for NABIL NAYAL? Where do you see the brand heading over the next few years? LO.1
(a) Blank Company sells three different categories of tools (small, medium and large).The cost and market value of its inventory of tools are as follows. Determine the value of the companys inventory...
plz help below with the unaswered question Apollo Data Systems is considering a promotional campaign that will increase armul credit sales by $700,000. The company has a 40% cost of goods sold and...
Hathaway Health Club sold three-year memberships at a reduced rate during its opening promotion. It sold 1,000 three-year nonrefundable memberships for $366 each. The club expects to sell 100...
A company has 600 units on hand and the annual usage is 7200 units. There are 240 working days in the year. What is the days of supply?
A company decides to establish an EOQ for an item. The annual demand is 400,000 units, each costing $9, ordering costs are $35 per order, and inventory carrying costs are 22%. Calculate the...
Sunshine Media has just completed an IPO, where 50 million shares of the 125 million shares outstanding were issued to the public at an offering price of $22 per share. On the offering date, the...
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity...
Openthe Phetsimulation Charges and Field from this link: ( https://phet.colorado.edu/en/simulation/charges-and-fields ) . In this simulation, a little different model is used: the little yellow "E...
A particle of mass m that is moving along the x-axis is experiencing a restoring force of the form F = -k+x, where kf is the spring constant. The Hamiltonian for this system is given as: = d 2m dx +...
Distinguish carefully between the following terms: i) Resolution and Sensitivity. ii) Type A and Type B evaluations of measurement uncertainty. [30%] (b) Describe two common schemes used for the...
Write out the form of the partial fraction decomposition of the function (See Example). Do not determine the numerical values of the coefficients. (a) +3 x5 + 2x3 A B C x Dx + E ++++ 2+2 6 (b)...
Repeat Problem 25 with the capacitor C S removed and compare results. Problem 25 Determine Z i , Z o , and V o for the network of Fig. 8.76 if V i = 20 mV. Fig. 8.76 +20 V 2 k2 82 o Vo Ipss = 12 mA...
The National Collegiate Athletic Association (NCAA) and the National Federation of State High School Associations (NFHS) set a new standard for non-wood baseball bats. Their goal was to ensure that...
John Holdren, science advisor to President Obama, argues that there are three possible human responses to climate change: mitigation, adaptation and suffering. Discuss the implications of this on...
What is the enhanced greenhouse effect, and what are the five main greenhouse gases that contribute to it?
How do climate models project future climate conditions?
Answer please, A company uses the perpetual inventory system and recorded the following entry: This entry reflects a
As a Financial Analyst in the Finance Department of Zeta Auto Corporation they are seeking to expand production. The CFO asks you to help decide whether the firm should set up a new plant to...
Chapter 4 When an Auditor finds misstatements in entities financial statements which may be the result of fraudulent act, what should be the role of an auditor under that situation? (2 Points)

a. The Ajex Company has several of items they store in inventory. The table below shows the

Question:

ITEM ANNUAL USAGE (# units) ITEM COST C34 $12 4000 B99 $23 8000 V94 $19 5500 Н64 $41 1200 P77 $72 400 Y12 $62 1100 R74 $33 1440

Step by Step Answer:

M22 should be handled as either an A or B item The key wou...View the full answer

Introduction To Materials Management

Students also viewed these Earth sciences questions