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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 individual dollar volumes to two decimal places. Also round percentage of dollan volume to two decimal places.) L. Houts Plastics Charlotte Inventory Levels Item Code Avg. Inventory (units) Value Dollar % of Dollar Volume ($/unit) Volume 1289 360 4.00 2347 300 4.00 1,200 36.20 2349 120 2.50 300 9.05 2363 75 1,50 2394 60 1.75 105 3.17 2395 35 2.00 6782 20 1.15 23 0.69 7844 12 2.05 24.6 0.74 8210 1.60 8310 2.00 14 0.42 9111 6 3.00 18 0.54 3.316.1 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 computed the metrics). 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

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 individual dollar volumes to two decimal places. Also round percentage of dollan volume to two decimal places.) L. Houts Plastics Charlotte Inventory Levels Item Code Avg. Inventory (units) Value Dollar % of Dollar Volume ($/unit) Volume 1289 360 4.00 2347 300 4.00 1,200 36.20 2349 120 2.50 300 9.05 2363 75 1,50 2394 60 1.75 105 3.17 2395 35 2.00 6782 20 1.15 23 0.69 7844 12 2.05 24.6 0.74 8210 1.60 8310 2.00 14 0.42 9111 6 3.00 18 0.54 3.316.1 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 computed the metrics). 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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**Title: Understanding ABC Classification in Inventory Management** **Introduction:** L. Houts Plastics, a manufacturer of injection-molded plastics in North Carolina, analyzed their inventory levels at their Charlotte facility. The goal was to classify items based on the ABC classification system, which helps in prioritizing inventory management efforts by categorizing items according to their significance. **L. Houts Plastics Charlotte Inventory Levels:** The table below provides an analysis of various inventory items: | **Item Code** | **Avg. Inventory (units)** | **Value ($/unit)** | **Dollar Volume** | **% of Dollar Volume** | |---------------|----------------------------|--------------------|-------------------|------------------------| | 1289 | 360 | 4.00 | 1,440 | 36.20 | | 2347 | 300 | 4.00 | 1,200 | 30.56 | | 2349 | 120 | 2.50 | 300 | 9.05 | | 2363 | 75 | 1.50 | 112.5 | 3.38 | | 2394 | 60 | 1.75 | 105 | 3.17 | | 2395 | 35 | 2.00 | 70 | 2.12 | | 6782 | 20 | 1.15 | 23 | 0.69 | | 7844 | 12 | 2.05 | 24.6 | 0.74 | | 8210 | 7 | 2.00 | 14 | 0.42 | | 9111 | 6 | 3.00 | 18 | 0.54 | **Total Inventory Dollar Volume: 3,976.10** **Classification Considerations:** For ABC classification, items are typically divided into three categories based on their significance: - **A**: High-value items, comprising a small percentage of the total inventory but a large percentage of dollar volume. - **B**: Moderate-value items, with moderate share in inventory and dollar volume. - **C**: Low-value items, comprising a
Transcribed Image Text:**Title: Understanding ABC Classification in Inventory Management** **Introduction:** L. Houts Plastics, a manufacturer of injection-molded plastics in North Carolina, analyzed their inventory levels at their Charlotte facility. The goal was to classify items based on the ABC classification system, which helps in prioritizing inventory management efforts by categorizing items according to their significance. **L. Houts Plastics Charlotte Inventory Levels:** The table below provides an analysis of various inventory items: | **Item Code** | **Avg. Inventory (units)** | **Value ($/unit)** | **Dollar Volume** | **% of Dollar Volume** | |---------------|----------------------------|--------------------|-------------------|------------------------| | 1289 | 360 | 4.00 | 1,440 | 36.20 | | 2347 | 300 | 4.00 | 1,200 | 30.56 | | 2349 | 120 | 2.50 | 300 | 9.05 | | 2363 | 75 | 1.50 | 112.5 | 3.38 | | 2394 | 60 | 1.75 | 105 | 3.17 | | 2395 | 35 | 2.00 | 70 | 2.12 | | 6782 | 20 | 1.15 | 23 | 0.69 | | 7844 | 12 | 2.05 | 24.6 | 0.74 | | 8210 | 7 | 2.00 | 14 | 0.42 | | 9111 | 6 | 3.00 | 18 | 0.54 | **Total Inventory Dollar Volume: 3,976.10** **Classification Considerations:** For ABC classification, items are typically divided into three categories based on their significance: - **A**: High-value items, comprising a small percentage of the total inventory but a large percentage of dollar volume. - **B**: Moderate-value items, with moderate share in inventory and dollar volume. - **C**: Low-value items, comprising a
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