ABC Analysis Stock Number Annual $ Volume Percent of Annual $ Volume J24 12,500 46.2 R26 9,000 33.3 L02 3,200 11.8 M12 1,550 5.8 P33 620 2.3 T72 65 0.2 S67 53 0.2 Q47 32 0.1 V20 30 0.1 Σ = 100.0 Class B items usually represent about 15-25% of the annual dollar volume (cost), but are only about 30% of the items. These are only guideline and the exact amounts will change for different situations. We are looking for more than a few items (often more than class A items) that are moderately costly from an annual perspective (less costly than the A items). We will take more care with managing these items in inventory than with C items, but not as much as A items. With the small amount of items that we have in problems like this we don't always see the exact guidelines for percentage of items and percentage of total annual cost. From the options below, select ALL of the inventory stock numbers (items) that would be classified as B items during an ABC analysis (see problem from download in previous step): Note: points off for incorrect answers J24 L02 M12 T72 ☐ V20
ABC Analysis Stock Number Annual $ Volume Percent of Annual $ Volume J24 12,500 46.2 R26 9,000 33.3 L02 3,200 11.8 M12 1,550 5.8 P33 620 2.3 T72 65 0.2 S67 53 0.2 Q47 32 0.1 V20 30 0.1 Σ = 100.0 Class B items usually represent about 15-25% of the annual dollar volume (cost), but are only about 30% of the items. These are only guideline and the exact amounts will change for different situations. We are looking for more than a few items (often more than class A items) that are moderately costly from an annual perspective (less costly than the A items). We will take more care with managing these items in inventory than with C items, but not as much as A items. With the small amount of items that we have in problems like this we don't always see the exact guidelines for percentage of items and percentage of total annual cost. From the options below, select ALL of the inventory stock numbers (items) that would be classified as B items during an ABC analysis (see problem from download in previous step): Note: points off for incorrect answers J24 L02 M12 T72 ☐ V20
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:ABC Analysis
Stock Number
Annual $ Volume Percent of Annual $ Volume
J24
12,500
46.2
R26
9,000
33.3
L02
3,200
11.8
M12
1,550
5.8
P33
620
2.3
T72
65
0.2
S67
53
0.2
Q47
32
0.1
V20
30
0.1
Σ = 100.0
Transcribed Image Text:Class B items usually represent about 15-25% of the annual dollar volume (cost), but are only about 30% of the
items. These are only guideline and the exact amounts will change for different situations.
We are looking for more than a few items (often more than class A items) that are moderately costly from an
annual perspective (less costly than the A items). We will take more care with managing these items in inventory
than with C items, but not as much as A items. With the small amount of items that we have in problems like this
we don't always see the exact guidelines for percentage of items and percentage of total annual cost.
From the options below, select ALL of the inventory stock numbers (items) that would
be classified as B items during an ABC analysis (see problem from download in
previous step):
Note: points off for incorrect answers
J24
L02
M12
T72
☐ V20
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