6 9 G I File I C:/Users/Huiya/OneDrive/Desktop/Persona|/Royal%20Holloway/Semester%202/Operation%20Management/Past%20Vear%20Exam/MN2506K%20$ept%202... is I {'5 ($1 . -~- =.= Contents 2 of5 Q + r.) E I EB Pageview I A' Readaloud I V Draw v '5' Highlight v Q Erase I Q B I.9 0) Explain the ABC Inventory Classication (20 marks). b) The manager of the Johnson's Garden Centre was wondering if they could manage their inventory better. He decided to develop an ABC classication system to help manage the inventory. The company's inventory consists of the following items: Garden Tool Cost Quarterly Demand [units Shovel 5.00 1,000 Edger 25.00 6 Weeder 6.00 400 Hose 20.00 800 Cutters 4.00 100 Sprinkler 7.00 800 Hedge Trimmer 5.00 5,000 Spreader 15.00 6 Sprayer 12.00 20 Clippers 8.00 15 Compute the total value (1) of each of the ten inventory items. What is the total value of all the inventory items? (20 marks) Which items should be declared 'A' items? What percentage of total inventory value does your 'A' group represent? What percentage of the total number of inventory items does your 'A' group represent? (20 marks) iii) Which items should be declared 'B' items? What percentage of total inventory value does your '5' group represent? What percentage of the total number of inventory items does your '3' group represent? (20 marks) iv) Which items should be declared 'C' items? What percentage of total inventory value does your 'C' group represent? What percentage of the total number of inventory items does your 'C' group represent? (20 marks) /0 Type here to search