6. After a merger, Old Framkranz found herself the only inventory clerk left at Allied Breakwater Company (ABC). The merger had left ABC with only 10 parts in inventory, and she had been told to manage them as effectively as possible. Each part was to be reviewed once a week. (ABC worked a very exhausting five-day week.) Framkranz knew inventory carrying cost was 20 percent per dollar of cost per year. She also knew, to really manage a part’s inventory well, she would have to spend a full day on the review, but she could do a reasonably good job in half a day. Even the most cursory review would require one-quarter day per part, however.

Files for the 10 parts contain the following information. How should Framkranz schedule the review of the parts?

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Unit Shipping Cost per Annual Reorder Order Part No. Vendor Cost ($) Cost/Unit Order ($) Usage Point Quantity 7 8 9 10 ABBCARCACA 123456 0.20 0 10 1,000 50 70 1.00 0.10 20 10 1 45 B 0.25 0.10 15 12 2 95 3.00 0.25 15 100 20 71 10.00 0 10 300 15 55 7.00 0.10 15 2 1 7 0.50 0.25 20 10 2 13 5.00 0 10 400 20 39 20.00 0.30 20 N 2 1 4 2.00 0 10 200 10 100