Question
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
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.)
Part 2
L. Houts Plastics Charlotte Inventory Levels | ||||||||
Item Code | Avg. Inventory (units) | Value ($/unit) | Dollar Volume | % of Dollar Volume | ||||
1289 | 380 | 4.25 | enter your response here | enter your response here | ||||
2347 | 300 | 4.00 | 1,200 | 34.32 | ||||
2349 | 120 | 2.50 | 300 | 8.58 | ||||
2363 | 65 | 1.80 | enter your response here | enter your response here | ||||
2394 | 60 | 1.75 | 105 | 3.00 | ||||
2395 | 30 | 2.25 | enter your response here | enter your response here | ||||
6782 | 20 | 1.15 | 23 | 0.66 | ||||
7844 | 12 | 2.05 | 25 | 0.70 | ||||
8210 | 8 | 1.60 | enter your response here | enter your response here | ||||
8310 | 7 | 2.00 | 14 | 0.40 | ||||
9111 | 6 | 3.00 | 18 | 0.51 | ||||
3,497 |
Part 3
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
B
C
A
.
Part 4
Item number
2349
should be classified as
A
C
B
.
Part 5
Item number
8210
should be classified as
B
C
A
.
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