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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 1289 2347 2349 2363 2394 2395 6782 7844 8210 8310 9111 L. Houts Plastics Charlotte Inventory Levels Avg. Inventory Dollar (units) Volume 380 300 120 75 60 30 20 12 5 7 6 Value ($/unit) 3.75 4.00 2.50 1.50 1.75 2.25 1.15 2.05 1.60 2.00 3.00 1,200 300 105 23 25 14 18 3,298 % of Dollar Volume 36.39 9.10 3.18 0.70 0.75 0 0.42 0.55

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 1289 2347 2349 2363 2394 2395 6782 7844 8210 8310 9111 L. Houts Plastics Charlotte Inventory Levels Avg. Inventory Dollar (units) Volume 380 300 120 75 60 30 20 12 5 7 6 Value ($/unit) 3.75 4.00 2.50 1.50 1.75 2.25 1.15 2.05 1.60 2.00 3.00 1,200 300 105 23 25 14 18 3,298 % of Dollar Volume 36.39 9.10 3.18 0.70 0.75 0 0.42 0.55

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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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.) ### L. Houts Plastics Charlotte Inventory Levels | Item Code | Avg. Inventory (units) | Value ($/unit) | Dollar Volume | % of Dollar Volume | |-----------|------------------------|----------------|---------------|--------------------| | 1289 | 380 | 3.75 | 1,425 | 43.22 | | 2347 | 300 | 4.00 | 1,200 | 36.39 | | 2349 | 120 | 2.50 | 300 | 9.10 | | 2363 | 75 | 1.50 | 113 | 3.43 | | 2394 | 60 | 1.75 | 105 | 3.18 | | 2395 | 30 | 2.25 | 68 | 2.06 | | 6782 | 20 | 1.15 | 23 | 0.70 | | 7844 | 12 | 2.05 | 25 | 0.75 | | 8210 | 5 | 1.60 | 8 | 0.24 | | 8310 | 7 | 2.00 | 14 | 0.42 | | 9111 | 6 | 3.00 | 18 | 0.55 | **Total Dollar Volume:** 3,298 This table displays the average inventory units and their corresponding value per unit for different item codes. The table also calculates the dollar volume of each item (obtained by multiplying average inventory by the value per unit) and the percentage of the total dollar volume each item represents. These are critical metrics for using the ABC classification system to prioritize inventory management efforts, with a focus on items with the highest dollar volume percentages
Transcribed Image Text:L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) ### L. Houts Plastics Charlotte Inventory Levels | Item Code | Avg. Inventory (units) | Value ($/unit) | Dollar Volume | % of Dollar Volume | |-----------|------------------------|----------------|---------------|--------------------| | 1289 | 380 | 3.75 | 1,425 | 43.22 | | 2347 | 300 | 4.00 | 1,200 | 36.39 | | 2349 | 120 | 2.50 | 300 | 9.10 | | 2363 | 75 | 1.50 | 113 | 3.43 | | 2394 | 60 | 1.75 | 105 | 3.18 | | 2395 | 30 | 2.25 | 68 | 2.06 | | 6782 | 20 | 1.15 | 23 | 0.70 | | 7844 | 12 | 2.05 | 25 | 0.75 | | 8210 | 5 | 1.60 | 8 | 0.24 | | 8310 | 7 | 2.00 | 14 | 0.42 | | 9111 | 6 | 3.00 | 18 | 0.55 | **Total Dollar Volume:** 3,298 This table displays the average inventory units and their corresponding value per unit for different item codes. The table also calculates the dollar volume of each item (obtained by multiplying average inventory by the value per unit) and the percentage of the total dollar volume each item represents. These are critical metrics for using the ABC classification system to prioritize inventory management efforts, with a focus on items with the highest dollar volume percentages
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