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Based on the percentages of dollar volume, item number 1289 should be classified as Item number 2349 should be classified as Item number 8210 should be classified as

Based on the percentages of dollar volume, item number 1289 should be classified as Item number 2349 should be classified as Item number 8210 should be classified as

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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L. Houts Plastics is a large manufacturer of​ injection-molded plastics in North Carolina. An investigation of the​ company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification​ system?

​(Round

dollar volume to the nearest whole number and percentage of dollar volume to two decimal​ places.)

 

Item Code    Avg. Inventory (units)    Value ($/unit)
1289                        380                           3.25
2347                        300                           4.00
2349                        120                           2.50
2363                         70                            1.30
2394                         60                            1.75
2395                         25                            1.75
6782                         20                            1.15
7844                         12                            2.05
8210                         10                           1.60
8310                          7                            2.00
9111                          6                             3.00

**L. Houts Plastics Inventory Analysis** L. Houts Plastics is a prominent manufacturer of injection-molded plastics based in North Carolina. A detailed review of the company's manufacturing facility in Charlotte yields the following inventory data, essential for classifying items according to an ABC classification system. The dollar volume is rounded to the nearest whole number, and the percentage of dollar volume is given to two decimal places. **Table: L. Houts Plastics Charlotte Inventory Levels** | **Item Code** | **Avg. Inventory (units)** | **Value ($/unit)** | **Dollar Volume** | **% of Dollar Volume** | |---------------|----------------------------|--------------------|-------------------|------------------------| | 1289 | 380 | 3.25 | 1,235 | 39.08 | | 2347 | 300 | 4.00 | 1,200 | 39.08 | | 2349 | 120 | 2.50 | 300 | 9.77 | | 2363 | 70 | 1.30 | 91 | 2.96 | | 2394 | 60 | 1.75 | 105 | 3.42 | | 2395 | 25 | 1.75 | 44 | 1.43 | | 6782 | 20 | 1.15 | 23 | 0.75 | | 7844 | 12 | 2.05 | 25 | 0.80 | | 8210 | 10 | 1.60 | 16 | 0.52 | | 8310 | 7 | 2.00 | 14 | 0.46 | | 9111 | 6 | 3.00 | 18 | 0.59 | | **Total** | | | **3,070** | | **Task: Classifying Items** For the classification exercise, focus on items 1289, 2349, and 8210. These items are selected for relative classification based on the dollar volume percentage. - **Item number
Transcribed Image Text:**L. Houts Plastics Inventory Analysis** L. Houts Plastics is a prominent manufacturer of injection-molded plastics based in North Carolina. A detailed review of the company's manufacturing facility in Charlotte yields the following inventory data, essential for classifying items according to an ABC classification system. The dollar volume is rounded to the nearest whole number, and the percentage of dollar volume is given to two decimal places. **Table: L. Houts Plastics Charlotte Inventory Levels** | **Item Code** | **Avg. Inventory (units)** | **Value ($/unit)** | **Dollar Volume** | **% of Dollar Volume** | |---------------|----------------------------|--------------------|-------------------|------------------------| | 1289 | 380 | 3.25 | 1,235 | 39.08 | | 2347 | 300 | 4.00 | 1,200 | 39.08 | | 2349 | 120 | 2.50 | 300 | 9.77 | | 2363 | 70 | 1.30 | 91 | 2.96 | | 2394 | 60 | 1.75 | 105 | 3.42 | | 2395 | 25 | 1.75 | 44 | 1.43 | | 6782 | 20 | 1.15 | 23 | 0.75 | | 7844 | 12 | 2.05 | 25 | 0.80 | | 8210 | 10 | 1.60 | 16 | 0.52 | | 8310 | 7 | 2.00 | 14 | 0.46 | | 9111 | 6 | 3.00 | 18 | 0.59 | | **Total** | | | **3,070** | | **Task: Classifying Items** For the classification exercise, focus on items 1289, 2349, and 8210. These items are selected for relative classification based on the dollar volume percentage. - **Item number
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