Item Annual Unit Item Annual Unit Number Demand Cost Number Demand Cost 1 10 $8 17 110 $23 18 16 18 74 18 3 36 30 19 8 610 4 1230 20 10 935 4 760 21 7 270 6 3 810 22 5 1400 7 19 420 23 5 900 56 35 24 46 67 105 17 25 32 160 10 27 350 26 101 45 11 19 36 27 83 12 12 12 115 28 54 16 13 7 2300 29 14 42 14 10 245 30 705 15 6 665 31 7 37 16 18 28 32 16 26

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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The EastCoasters Bicycle Shop stocks bikes; helmets;
clothing; a variety of bike parts including chains, gears,
tires, wheels; and biking accessories. The shop is in a
storefront location on a busy street and it has very limited
storage space for inventory. It often runs out of items and is
unable to serve customers. To help manage its inventory
the shop would like to classify the stock using the ABC
system. Following is a list of items the shop stocks and the
annual demand and unit value for each:Classify the inventory items according to the ABC ap-
proach using dollar value of annual demand.

Item
Annual
Unit
Item
Annual
Unit
Number Demand
Cost
Number
Demand
Cost
1
10
$8
17
110
$23
18
16
18
74
18
3
36
30
19
8
610
4
1230
20
10
935
4
760
21
7
270
6
3
810
22
5
1400
7
19
420
23
5
900
56
35
24
46
67
105
17
25
32
160
10
27
350
26
101
45
11
19
36
27
83
12
12
12
115
28
54
16
13
7
2300
29
14
42
14
10
245
30
705
15
6
665
31
7
37
16
18
28
32
16
26
Transcribed Image Text:Item Annual Unit Item Annual Unit Number Demand Cost Number Demand Cost 1 10 $8 17 110 $23 18 16 18 74 18 3 36 30 19 8 610 4 1230 20 10 935 4 760 21 7 270 6 3 810 22 5 1400 7 19 420 23 5 900 56 35 24 46 67 105 17 25 32 160 10 27 350 26 101 45 11 19 36 27 83 12 12 12 115 28 54 16 13 7 2300 29 14 42 14 10 245 30 705 15 6 665 31 7 37 16 18 28 32 16 26
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