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5. MalWart Inc, a local retailer practices an ABC analysis of its inventory and calculates that out of 5000 items, 22% can be classified as
5.
MalWart Inc, a local retailer practices an ABC analysis of its inventory and calculates that out of 5000 items, 22% can be classified as A items, 33% as B items, and the remainder as Citems. A decision is made that A items are to be cycle counted once a month, B items every three months, and C items twice a year. Calculate the total counts and the counts per day by classification. The company works five days per week and 50 weeks per year. The cycle count for the three different classes of items is as follows: Class A items =50 items / day; Class B items =26 items / day and Class C items =18 items / day Class A items =53 items / day; Class B items =30 items / day and Class C items =18 items / day Class A items =52 items / day ; Class B items =26 items / day and Class C items =28 items / day Class A items =53 items / day ; Class B items =22 items / day and Class C items =18 items / day Class A items =53 items / day ; Class B items =26 items / day and Class C items =18 items / day Step by Step Solution
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