The following table contains the monthly usage and unit costs for a random sample of 15 items

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The following table contains the monthly usage and unit costs for a random sample of 15 items from a list of 2,000 inventory items at a health care facility.

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a. Develop an A-B-C classification for these items.
b. How could the manager use this information?
c. After reviewing your classification scheme, suppose that the manager decides to place item P05 into the A category. What are some possible explanations for this decision?
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Operations Management

ISBN: 978-0071091428

4th Canadian edition

Authors: William J Stevenson, Mehran Hojati

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