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a. Classify each item in inventory using an ABC plan. Item Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Class

a. Classify each item in inventory using an ABC plan. Item Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Class

Practical Management Science
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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a. Classify each item in Inventory using an ABC plan. Item Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Class < Prev 5 of 14 Next >
Transcribed Image Text:a. Classify each item in Inventory using an ABC plan. Item Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Class < Prev 5 of 14 Next >
In the past, Taylor Industries has used a fixed-time period inventory system that involved taking a complete inventory count of all items each month. However, increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor involved in inventory stockrooms, yet without increasing other costs, such as shortage costs. Here is a random sample of 20 of Taylor's items. ITEM NUMBER 1 2 3 4 5 6 7 8 9 10 $ ANNUAL USAGE 1,900 12,700 2,700 51, 800 10, 300 1, 200 2,500 11, 700 5,600 15,800 ITEM NUMBER 11 12 13 14 15 16 17 18 19 28 20 ANNUAL USAGE $ 13,800 1,000 43, 600 10, 600 1,600 10, 900 4,500 63,200 4,000 3,400
Transcribed Image Text:In the past, Taylor Industries has used a fixed-time period inventory system that involved taking a complete inventory count of all items each month. However, increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor involved in inventory stockrooms, yet without increasing other costs, such as shortage costs. Here is a random sample of 20 of Taylor's items. ITEM NUMBER 1 2 3 4 5 6 7 8 9 10 $ ANNUAL USAGE 1,900 12,700 2,700 51, 800 10, 300 1, 200 2,500 11, 700 5,600 15,800 ITEM NUMBER 11 12 13 14 15 16 17 18 19 28 20 ANNUAL USAGE $ 13,800 1,000 43, 600 10, 600 1,600 10, 900 4,500 63,200 4,000 3,400
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