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Problem 11-40 (Static) In the past, Taylor Industries has used a fixed-time perlod Inventory system that Involved taking a complete inventory count of all items each month. However, increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor Involved in Inventory stockrooms, yet without Increasing other costs, such as shortage costs. Here is a random sample of 20 of Taylor's Items. ITEM ANNUAL ITEM ANNUAL NUMBER USAGE NUMBER USAGE $ 1,500 $13,000 1 11 2 12,eee 2,200 50, eee 9,600 12 6ee 3 13 42,000 9,900 1, 20e 10, 200 4,000 61,e00 3,500 2,900 4 14 5 15 750 16 7 2,000 11,e00 17 18 see 19 10 15,e00 20 a. What would you recommend Taylor do to cut back Its labor cost? (Illustrate using an ABC plan.) Item Number Class 1 2 3 4 6 7 8. 10 11 12 13 14 15 16 17 18 19 20

Problem 11-40 (Static) In the past, Taylor Industries has used a fixed-time perlod Inventory system that Involved taking a complete inventory count of all items each month. However, increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor Involved in Inventory stockrooms, yet without Increasing other costs, such as shortage costs. Here is a random sample of 20 of Taylor's Items. ITEM ANNUAL ITEM ANNUAL NUMBER USAGE NUMBER USAGE $ 1,500 $13,000 1 11 2 12,eee 2,200 50, eee 9,600 12 6ee 3 13 42,000 9,900 1, 20e 10, 200 4,000 61,e00 3,500 2,900 4 14 5 15 750 16 7 2,000 11,e00 17 18 see 19 10 15,e00 20 a. What would you recommend Taylor do to cut back Its labor cost? (Illustrate using an ABC plan.) Item Number Class 1 2 3 4 6 7 8. 10 11 12 13 14 15 16 17 18 19 20

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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Problem 11-40 (Static) In the past, Taylor Industries has used a fixed-time period Inventory system that Involved taking a complete Inventory count of all items each month. However, Increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor Involved in Inventory stockrooms, yet without Increasing other costs, such as shortage costs. Here is a random sample of 20 of Taylor's Items. ITEM ANNUAL ITEM ANNUAL NUMBER USAGE NUMBER USAGE $ 1,500 $13,000 6ee 1 11 12,000 2,200 50, e0e 9,600 12 13 42,800 9,900 1,200 10, 200 4, e00 61,eee 3,5ee 4 14 15 75e 16 7 2, еее 11,e00 17 18 see 19 10 15,e00 20 2,900 a. What would you recommend Taylor do to cut back Its labor cost? (Illustrate using an ABC plan.) Item Number Class 1 2 3 4 6 7 8 9. 10 11 12 13 14 15 16 17 18 19 20 < Prev 3 of 3
Transcribed Image Text:Problem 11-40 (Static) In the past, Taylor Industries has used a fixed-time period Inventory system that Involved taking a complete Inventory count of all items each month. However, Increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor Involved in Inventory stockrooms, yet without Increasing other costs, such as shortage costs. Here is a random sample of 20 of Taylor's Items. ITEM ANNUAL ITEM ANNUAL NUMBER USAGE NUMBER USAGE $ 1,500 $13,000 6ee 1 11 12,000 2,200 50, e0e 9,600 12 13 42,800 9,900 1,200 10, 200 4, e00 61,eee 3,5ee 4 14 15 75e 16 7 2, еее 11,e00 17 18 see 19 10 15,e00 20 2,900 a. What would you recommend Taylor do to cut back Its labor cost? (Illustrate using an ABC plan.) Item Number Class 1 2 3 4 6 7 8 9. 10 11 12 13 14 15 16 17 18 19 20 < Prev 3 of 3
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