Conduct the ABC analysis for a convenience store, using the following percentagesA inventory - most important items, generating 60% of salesB inventory - items generating the next 30% of salesCinventory - items generating <10% of salesStock (units) |Unit price Revenue1000 $ 1.89ProductАВСCandy barsCereal200 $4.50Cookies400 $ 4.00Milk100 $ 2.00200 $ 3.00500 $ 1.50MuffinsSodaHints1. sort by revenue (largest to smallest)2. calculate % of total revenue for each item3. run a cumulative % for the items4. identify the cut-off for each categoryYou can run the entire exercise sorting and extending the table above

ABC analysis categorizes the inventory into three categories: A, which requires accurate records…

Answered: Conduct the ABC analysis for a…

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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Similar questions

What are the two issues addressed by inventory management?
ABC classification divides on-hand inventory into three classes, generally based upon a. item quantity. b. unit price. c. the number of units on hand. d. annual demand. e. annual dollar value.
Please help me with this practice problem. Please be specific on where to put the equations and what equations to use. Thank you
can you please help me answer this question.... Rebar Company prepared the following analysis of its year-end inventory on December 31. First, determine the total lower of cost or market value for each product in Rebar Company's inventory. Second, prepare the journal entry needed at year-end to value the inventory at LCM, if applicable. Historical Cost Replacement Cost Product Quantity per unit per unit A 17 $430 $499 B 140 325 299 C 38 75 69
7. Sam's Cat Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.00 per bag. The following information is available about these bags. Refer to the standard normal table for z-values. ≻Demand = 95 bags/week ≻Order cost = $57/order ≻Annual holding cost = 30 percent of cost ≻Desired cycle-service level=98 percent ≻Lead time = 1 week(s) (5 working days) ≻Standard deviation of weekly demand = 20 bags ≻Current on-hand inventory is 350 bags, with no open orders or backorders. d. The store currently uses a lot size of 490 bags (i.e., Q=490). What is the annual holding cost of this policy? (Enter your response rounded to two decimal places.) and (Enter your response rounded to two decimal places.) **select the correct multiple choice answer** e. What would be the annual cost saved by shifting from the 490-bag lot size to the EOQ? (Enter your responses rounded to two decimal places.)
Do you think the safety stock (safety inventory) could be negative? What is the meaning of a negative safety inventory (hint: safety stock is the difference between the optimal inventory and the average demand)?
Discuss with examples the two methods of inventory control. Which method do you think is better for a retail store with several items of small value?
Don't use chatgpt,I will 5 upvotes
What are the 3 major inventory management techniques? Select one company and make on that company data
Use the inventory table and the gross profit inventory method to estimate the ending inventory and cost of goods sold if a 40% gross profit is realized on sales and net sales are $115,990. Date of purchase Units Cost per Total Retail price Total retail purchased unit cost per unit value Beginning inventory 41 $830 $34,030 $985 $40,385 February 5 20 $1,750 $35,000 $2,115 $42,300 February 19 15 $975 $14,625 $1,996 $29,940 March 3 28 $470 $13,160 $610 $17,080 Goods available for sale 104 $129,705 Units sold 81 Ending inventory 23 The estimated cost of goods sold is $
In ABC analysis, 50 to 60 percent of the number of items in inventory but only about 10 to 15 percent of the annual dollar value represent Select one: a. B items b. C items C. A items d. A or C items
The following data give monthly Demband >1300 units Ordenng cost Holding lo st to Q - $ 15 pe oder $2/ units peo year 464 Lead time 4 days %3D wha t is the tolal annua / vanable inventory Cost Cie total annus! total aroual ordening) © $968 $ 8 ® $484 D $ I436 14520

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