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 plantclassify 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 number 2349 should be classified asItemCode12892347234923632394239567827844821083109111Item number 8210 should be classified asL. Houts Plastics Charlotte Inventory LevelsAvg.Inventory (units)Value($/unit)3.75420300120606032257620124.002.501.801.752.251.152.052.002.003.00DollarVolume1,2003001052325% of DollarVolume34.728.683.040.670.7114183,456For the following three questions, consider only items 1289, 2349, and 8210 from the above table for relative classification (these are some of the items for which you computed the metrics).Based on the percentages of dollar volume, item number 1289 should be classified as0.410.52

The A-B-C approach classifies inventory items according to some measure of importance, usually…

Answered: L. Houts Plastics is a large…

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 purchasing agent for a company that assembles and sells air-conditioning eqpt in US has noted that the cost of compressors has increased significantly each time they have reordered. The company uses EOQ model to determine order size. What are the implications of this price escalation with respect to order size? What factors other than price must be taken into consideration?
As the new owner of a supermarket, you have inherited a large inventory of unsold imported Limburger cheese, and you would like to set the price so that your revenue from selling it is as large as possible. Previous sales figures of the cheese are shown in the following table. Price per Pound, p $3.00 $4.00 $5.00 Monthly Sales, q (pounds) 404 286 224 (a) Use the sales figures for the prices $4 and $5 per pound to construct a demand function of the form q = Ae-bP, where A and b are constants you must determine. (Round A and b to two significant digits.) q = 760.04e 0.34p x (b) Use your demand function to find the price elasticity of demand at each of the prices listed. (Round your answers to two decimal places.) p = $3 E = -0.65 p = $4 E = -0.98 p = $5 E = -1.23 (c) At what price should you sell the cheese to maximize monthly revenue? (Round your answer to the nearest cent.) $ 4.17 (d) If your total inventory of cheese amounts to only 200 pounds and it will spoil one month from now, how…
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 classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Item number 2349 should be classified as Item Code Item number 8210 should be classified as 1289 2347 2349 2363 2394 2395 6782 7844 8210 8310 9111 L. Houts Plastics Charlotte Inventory Levels Value Dollar ($/unit) Volume Avg. Inventory (units) 400 300 120 75 89223 co 60 30 20 12 7 6 3.75 4.00 2.50 1.50 1.75 2.00 1.15 2.05 1.80 2.00 3.00 1,200 300 105 23 25 14 18 3,372 % of Dollar Volume 35.59 8.90 3.11 0.68 0.73 0 0.42 0.53 For the following three questions, consider only items 1289, 2349, and 8210 from the above table for relative classification (these are some of the items for which you…
15-8
Discuss what is VED classification and FSND classification in inventory management?
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 $499 B 140 325 299 C 38 75 69
Alpha Products, Inc., is having a problem trying to control inventory. There is insufficient time to devote to all its items equally. The following is a sample of some items stocked, along with the annual usage of each item expressed in dollar volume.in Table 3 (below): Table 3. Item Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Annual Dollar Usage ($) 7,000 1,000 14,000 2,000 24,000 68,000 17,000 900 1,700 2,300 80,000 400 1,100 30,000 1,900 800 90,000 12,000 300 32,000 a) As an Operations Management specialist, what system would you recommend for allocating control time for this inventory.
Southern Markets, Inc. is considering the use of ABCanalysis to focus on the most critical SKUs in its inventory.Currently, there are approximately 20,000 different SKUswith a total dollar usage of $10,000,000 per year.a. What would you expect to be the number of SKUs and thetotal annual dollar usage for A items, B items, and C itemsat Southern Markets, Inc.? b. The following table provides a random sample of the unitvalues and annual demands of eight SKUs. Categorizethese SKUs as A, B, and C items.
Discuss why the EOQ formula may give poor results for determining plannedorder releases.
a) What is the economic order quantity? b) Find the annual holding costs.c) Find the annual ordering costs.d) What is the reorder point?
Given the following information for a purchased component, what is the total annual cost for the item? Annual demand = 500,000 Purchase price = $10 per unit Order quantity 100,000 • Order cost = $5 per order • Annual holding cost per unit = = $2 . $2.510,100 O $510,025 $510,250 O $5,100,250 O $5,100,025
Part 1 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.) For the following three questions, consider only items 1289, 2349,8210 from the above table for relative classification (these are some of the items for which you computed the metrics) A) Based on the percentages of follar colume, item number 1289 should be classified as _ (A,B,C) B) Item number 2349 should be classified as _ (A,B,C) c) Item number 8210 should be classified as _ (A.B, C)

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