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PRODUCT # SR101 SR103 SR105 SR201 SR203 SR205 SR301 SR303 SR305 SR500 Mark 2 NNNNNG 2 2 2 2 10 ANNUAL UNITS SOLD 15,000

  

PRODUCT # SR101 SR103 SR105 SR201 SR203 SR205 SR301 SR303 SR305 SR500 Mark 2 NNNNNG 2 2 2 2 10 ANNUAL UNITS SOLD 15,000 750 1,600 45 10 9,250 700 550 3,000 100 Question 1 2 3 4 5 SALE PRICE PER UNIT $250 $1,500 $600 $2,250 $3,500 $500 $650 $700 $920 $1,100 Ann Rev Sorted Annual Rev % of Ann Rev Cumulative % Annual Rev Rank (ABC class) based on Revenue Assignment Build an ABC Analysis based on Annual Revenue Does this analysis follow the Pareto Principle (Yes / Somewhat / No)? Explain. On Sheet "Volume", build an ABC Analysis based on Annual Volume (Units Sold) Does this analysis follow the Pareto Principle (Yes / Somewhat / No)? Explain. Do the two Analyses result in the same ABC groupings? Explain.

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1 Build an ABC Analysis based on Annual Revenue An ABC analysis is a method of evaluating inventory items based on their annual revenue The items are divided into three categories A B and C based on t... blur-text-image

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