Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their supplier (Class A items), those that will be controlled using a continuous review system (B items), and those that will be held in a two bin system (C items). The following table shows the annual dollar usage for a sample of eight SKUs. Fill in the blanks for annual dollar usage below. (Enter your responses rounded to the nearest whole number.) SKU Unit Value Demand (units) Annual Dollar Usage 1 $0.25 65,000 $nothing 2 $0.80 400 $nothing 3 $4.50 900 $nothing 4 $1.30 200 $nothing 5 $0.01 1,300 $nothing 6 $0.55 80 $nothing 7 $1.00 35,000 $nothing 8 $0.03 115,000 $nothing
Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their supplier (Class A items), those that will be controlled using a continuous review system (B items), and those that will be held in a two bin system (C items). The following table shows the annual dollar usage for a sample of eight SKUs. Fill in the blanks for annual dollar usage below. (Enter your responses rounded to the nearest whole number.) SKU Unit Value Demand (units) Annual Dollar Usage 1 $0.25 65,000 $nothing 2 $0.80 400 $nothing 3 $4.50 900 $nothing 4 $1.30 200 $nothing 5 $0.01 1,300 $nothing 6 $0.55 80 $nothing 7 $1.00 35,000 $nothing 8 $0.03 115,000 $nothing
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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Question
Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their supplier (Class A items), those that will be controlled using a continuous review system (B items), and those that will be held in a two bin system (C items).
The following table shows the annual dollar usage for a sample of eight SKUs. Fill in the blanks for annual dollar usage below. (Enter your responses rounded to the nearest whole number.)
|
SKU
|
Unit Value
|
Demand (units)
|
Annual Dollar Usage
|
|
1
|
$0.25
|
65,000
|
$nothing
|
|
2
|
$0.80
|
400
|
$nothing
|
|
3
|
$4.50
|
900
|
$nothing
|
|
4
|
$1.30
|
200
|
$nothing
|
|
5
|
$0.01
|
1,300
|
$nothing
|
|
6
|
$0.55
|
80
|
$nothing
|
|
7
|
$1.00
|
35,000
|
$nothing
|
|
8
|
$0.03
|
115,000
|
$nothing
|
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