Question
Hershey Office Supply, Inc. produces office supplies that are sold primarily to corporate users. Elizabeth Rigby, vice president of logistics, would like to move ahead
Hershey Office Supply, Inc. produces office supplies that are sold primarily to corporate users. Elizabeth Rigby, vice president of logistics, would like to move ahead on a project that was started about a year ago. At that time, a group of logistics analysts developed a list of stock-keeping units (SKUs) and their annual sales .
SKU ____________________ Annual Sales
A2067………………………………….$541
A2133………………………………..$2,471
A4142………………………………….$110
A6916………………………………….$287
A7025………………………………….$149
A7428………………………………….$266
A7850………………………………….$338
B1139………………………………….$104
B2155………………………………….$311
B4151…………………………………...$90
B5568………………………………….$121
B7116………………………………….$604
C2032………………………………….$442
C5816………………………………….$215
C7631………………………………….$178
C8605………………………………….$248
C9323………………………………..$1,167
C9814………………………………..$1,374
F3300………………………………..$1,640
F6018………………………………….$168
F9575………………………………$13,364
G5967…………………………………$115
T1192………………………………….$189
T1801………………………………….$158
T4470………………………………….$678
T8594………………………………….$127
T8994………………………………….$766
T9039………………………………..$1,004
T9204………………………………..$1,992
T9800………………………………….$488
X1561……………………………….$5,699
X2661……………………………….$3,146
X9988……………………………….$4,142
Y1247…………………………………$202
Y1645…………………………………$231
Y2133…………………………………$100
Y3118………………………………….$873
Y4100………………………………….$134
Y4587………………………………..$8,339
Y4765………………………………….$141
Y6685………………………………….$368
Y8727………………………………….$403
Y9971…………………………………...$95
……………………………………..$53,578
She would like to develop tighter inventory controls for SKUs. Your task is to prepare the following analysis for her.
Classify the SKUs in the list as A, B, or C items based on their annual sales revenues, where A items generate the first 80 percent of the revenues, B items generate the next 15 percent, and C items generate the remaining 5 percent.
Prepare a report that summarizes the SKU count, the percent of total SKUs, the sum of annual sales, and the percent of total sales by class (A, B, and C).
Develop an x-y scatter chart showing the cumulative percent of items (x) and the cumulative percent sales (y).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To find out the classification of SKUs first we need to put the data in descending order of business size Post that We need to add sales contribution ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
