Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The NextGen distribution is working on improving inventory management by performing an ABC Analysis. The management team considers the following factors for the analysis: hits

image text in transcribed
The NextGen distribution is working on improving inventory management by performing an ABC Analysis. The management team considers the following factors for the analysis: hits and criticality to operations. The criticality to operations has been calculated using the Analytical Hierarchy Process (AHP) by an outside consultant, Given the initial ABC categories combine these two categories to come up with the final classification. Assume A item is 5,B is 4 , and C is 1 point. And criticality is three times as important as hits. Finally, top 70% is a next 25%B and the rest are C items. (Use three decimal place accuracy for ratio and cumulative ratio calculations when needed, e.g., 0.123) a. Perform the final ABC Analysis by combining hits and criticality. (15 Points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Lean Audit A Detailed User Guide For The Lean Factory Audit Online

Authors: Isaias Wallaker

1st Edition

B09R3HXJ11, 979-8408651320

More Books

Students also viewed these Accounting questions

Question

Why are paracrises a unique aspect of risk mitigation?

Answered: 1 week ago

Question

5. Describe the visual representations, or models, of communication

Answered: 1 week ago