mgmt-6085-21s-assignment-3-abc-analysis (Sample)

MGMT-6085-21S Assignment #3 - ABC Analysis Inventory and Distribution (Fanshawe College) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university MGMT-6085-21S Assignment #3 - ABC Analysis Inventory and Distribution (Fanshawe College) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Saad Islam (janiti6977@seosnaps.com) lOMoARcPSD|37617702

MGMT-6085 Inventory Distribution Management Student Name Student Number Chapters 06 Northern Northern Markets, Inc. ABC Analysis Northern Markets Inc. is considering the use of ABC analysis to focus on the most critical SKU’s in its inventory. Currently there are approximately 20,000 different SKU’s with a total dollar usage of $10,000,000.00 per year. A. What would you expect to be the number of SKU’s and the total annual dollar usage for A items, B items, and C items for Northern Markets, Inc. B. The following table provides a random sample of the unit values and annual demands of 8 SKU’s. Categorize these SKU’s as A, B, and C items. SKU Code Unit Value Demand (in units) A104 $2.10 3,500 D205 $2.50 40 X104 $0.85 1350 U404 $0.25 50 L205 $4.75 200 S104 $0.02 14,000 X205 $0.35 1,020 L104 $4.25 500 Page 1 of 3 Downloaded by Saad Islam (janiti6977@seosnaps.com) lOMoARcPSD|37617702

MGMT-6085 Inventory Distribution Management B) SKU Ranking and Categories SKU Code Unit Value Demand (in units) Value Cumulativ e Ratio in % Categorizatio n A104 $2.10 3,500 7350 7350 59.79 A L104 $2.50 40 2125 9475 17.3 B X104 $0.85 1350 1147.5 10622.5 9.3 B L205 $0.25 50 950 11572.5 7.7 B X205 $4.75 200 357 11929.5 2.9 C S104 $0.02 14,000 250 12179.5 2.03 C D205 $0.35 1,020 100 12279.5 0.81 C U404 $4.25 500 12.5 12292 0.10 C 12292 Page 3 of 3 Downloaded by Saad Islam (janiti6977@seosnaps.com) lOMoARcPSD|37617702