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5. L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields
5. L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) L. Houts Plastics Charlotte Inventory Levels Value Avg. Inventory (units) ($/unit) Dollar Volume % of Dollar Volume Item Code 1289 360 3.75 2347 300 4.00 1,200 37.39 2349 120 2.50 300 9.35 2363 75 1.50 2394 60 1.75 105 3.27 2395 30 1.75 6782 20 1.15 7844 12 2.05 2225 23 0.72 0.77 8210 5 2.00 8310 9111 76 2.00 14 3.00 18 3,210 0.44 0.56 For the following three questions, consider only items 1289, 2349, and 8210 from the above table for relative classification (these are some of the items for which you computed the metrics). Based on the percentages of dollar volume, item number 1289 should be classified as (1) Item number 2349 should be classified as (2) Item number 8210 should be classified as (3). (1) OB (2) O B (3) O B Oc O
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