Question
Annual sales data for 50 items stored at the central warehouse is given in the Excel file. A regional warehouse will be built that will
Annual sales data for 50 items stored at the central warehouse is given in the Excel file. A regional warehouse will be built that will store 10 of these 50 items, but it is unknown which 10 items will be stocked. Annual sales from the regional warehouse are projected to be $900,000. a) Determine the % of sales (Y value) for the top 20% of items (the X value). b) Calculate the constant A. c) Use a turnover ratio of 8 for the top 20% of items (A items), a turnover ratio of 4 for the next 30% of items (B items), and turnover ratio of 2 for the remaining items (C items). Assuming the same Paretos Law relationship between sales and items at the central warehouse will hold at the regional warehouse so you can forecast the sales of the ten items at the regional warehouse. Determine the expected average inventory value at the regional warehouse. Product Number Annual Sales DSX-88-8921 $13,810 DSX-88-4200 $17,991 DSX-88-4240 $8,329 DSX-88-5355 $11,735 DSX-88-7564 $40,537 DSX-88-4481 $169 DSX-88-7428 $56,597 DSX-88-9307 $32,735 DSX-88-9513 $42,185 DSX-88-1196 $71,733 DSX-88-1841 $113,342 DSX-88-6504 $631,705 DSX-88-1798 $33,793 DSX-88-1852 $61,757 DSX-88-5983 $39,241 DSX-88-8182 $1,909 DSX-88-9241 $4,470 DSX-88-7275 $7,219 DSX-88-5021 $12,867 DSX-88-9398 $41,968 DSX-88-6175 $13,344 DSX-88-1454 $402,412 DSX-88-4529 $349,551 DSX-88-6931 $14,248 DSX-88-9412 $193,350 DSX-88-3014 $60,634 DSX-88-2567 $6,864 DSX-88-8259 $84,086 DSX-88-9132 $422 DSX-88-7364 $8,057 DSX-88-2827 $22,501 DSX-88-1470 $116,850 DSX-88-3725 $2,164 DSX-88-9338 $6,417 DSX-88-5831 $73,827 DSX-88-5218 $628,031 DSX-88-2736 $1,879 DSX-88-7553 $945,462 DSX-88-1922 $41,439 DSX-88-6798 $73,437 DSX-88-1714 $1,368,191 DSX-88-2364 $53,815 DSX-88-6572 $75,663 DSX-88-3273 $800,783 DSX-88-7066 $88,148 DSX-88-5569 $893,531 DSX-88-7399 $58,497 DSX-88-9031 $1,253,017 DSX-88-4095 $22,194 DSX-88-9936 $306,633
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