Question
1. Prepare a table-based ABC analysis of usage value. Classify as follows: A-items: top 20% of usage value B-items: next 30% of usage value C-items:
1. Prepare a table-based ABC analysis of usage value. Classify as follows:
A-items: top 20% of usage value
B-items: next 30% of usage value
C-items: remaining 50% of usage value
3. Does this suggest that Pierre Lomouche’s estimate of inventory weeks is correct?
4. Based on the sample, analyze the underlying causes of the availability problem.
5. What recommendations would you give to the Company.
Step by Step Solution
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Step: 1
Category Percentage of items Item Class Aitems 20 19 4 13 17 Class Bitems 30 2 16 12 18 20 8 Class Citems 50 5 7 15 14 11 9 6 3 10 1 3 No although statistically a sample ought to be a representation o...
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Operations Management
Authors: Jay Heizer, Barry Render
11th edition
9780132921145, 132921146, 978-0133408010
