A company manufactures a line of 10 items. The usage and unit cost are shown in the following table, along with the annual rand usage. The latter is obtained by multiplying the unit usage by the unit cost. Use the A, B, and C classification method and the data below to classify the items. a. Calculate the annual rand usage for each item b. List items according to their annual rand usage. c Calculate the cumulative rand usage and the cumulative percentage of items. d Group items into an A, B, and C classification. Part Number Annual unit usage/actual demand Unit cost 1 2350 2 2 3050 3 3 1500 2 4 2090 1 5 350 2 6. 200 1 7 250 8 50 2 9 5500 10 100 1
A company manufactures a line of 10 items. The usage and unit cost are shown in the following table, along with the annual rand usage. The latter is obtained by multiplying the unit usage by the unit cost. Use the A, B, and C classification method and the data below to classify the items. a. Calculate the annual rand usage for each item b. List items according to their annual rand usage. c Calculate the cumulative rand usage and the cumulative percentage of items. d Group items into an A, B, and C classification. Part Number Annual unit usage/actual demand Unit cost 1 2350 2 2 3050 3 3 1500 2 4 2090 1 5 350 2 6. 200 1 7 250 8 50 2 9 5500 10 100 1
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:A company manufactures a line of 10 items. The usage and unit cost are shown in the
following table, along with the annual rand usage. The latter is obtained by multiplying the
unit usage by the unit cost. Use the A, B, and C classification method and the data below to
classify the items.
a. Calculate the annual rand usage for each item
b. List items according to their annual rand usage.
c Calculate the cumulative rand usage and the cumulative percentage of items.
d Group items into an A, B, and C classification.
Part Number
Annual unit usage/actual demand
Unit cost
1
2350
2
2
3050
3
3
1500
2
4
2090
1
5
350
2
6.
200
1
7
250
8
50
2
9
5500
10
100
1
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