Sample Cat. ref. Sales Unit Description Last 12 mo. Inventory as Reorder sales (units) at last year Quantity end (units) (Units) 1,000 Sales Unit number Cost (€) number 11036 2.40 Disposable Aprons (10pk) Ear-loop Masks(Box) Drill Type 164 Disposable Gloves Large 150ml Syringe Intubation Tube (Adult) Pocket Organiser Blue CPAP Consumable Kit 100,000 60,000 2 11456 3.60 1.10 120 1,000 11563 220 420 250 8,500 10,000 100 12054 3.50 35,400 11.30 97.40 12372 430 120 12774 12979 6,500 20 20 7 7.00 120 160 500 13063 187.00 400 10 Zinc Oxide Tape Stethoscope Head Disp. Latex Catheter Roll-up Wheelchair Ramp 13236 1.50 1,260 50 10 13454 6.25 10 16 25 11 13597 0.60 3,560 12 20 12 13999 152.50 12 44 50 1.40 12.00 13 14068 LFT Tube 22,500 10,500 8,000 14 14242 Cervical Collar 140 24 20 Head Wedge Three-Wheel Scooter 15 14310 89.00 44 2 10 14405 14456 755.00 80.40 16 14 17 Neonatal Trach. Tube 268 6 100 Mouldable Strip Paste Sequential Comp. Pump Toilet Safety Frame 18 14675 10.20 1,250 172 100 19 14854 430.00 430 40 50 20 24943 25.60 560 18 20 Weeks per annum: 52.14 Holding cost (%) Ordering cost (€) 15 50
Sample Cat. ref. Sales Unit Description Last 12 mo. Inventory as Reorder sales (units) at last year Quantity end (units) (Units) 1,000 Sales Unit number Cost (€) number 11036 2.40 Disposable Aprons (10pk) Ear-loop Masks(Box) Drill Type 164 Disposable Gloves Large 150ml Syringe Intubation Tube (Adult) Pocket Organiser Blue CPAP Consumable Kit 100,000 60,000 2 11456 3.60 1.10 120 1,000 11563 220 420 250 8,500 10,000 100 12054 3.50 35,400 11.30 97.40 12372 430 120 12774 12979 6,500 20 20 7 7.00 120 160 500 13063 187.00 400 10 Zinc Oxide Tape Stethoscope Head Disp. Latex Catheter Roll-up Wheelchair Ramp 13236 1.50 1,260 50 10 13454 6.25 10 16 25 11 13597 0.60 3,560 12 20 12 13999 152.50 12 44 50 1.40 12.00 13 14068 LFT Tube 22,500 10,500 8,000 14 14242 Cervical Collar 140 24 20 Head Wedge Three-Wheel Scooter 15 14310 89.00 44 2 10 14405 14456 755.00 80.40 16 14 17 Neonatal Trach. Tube 268 6 100 Mouldable Strip Paste Sequential Comp. Pump Toilet Safety Frame 18 14675 10.20 1,250 172 100 19 14854 430.00 430 40 50 20 24943 25.60 560 18 20 Weeks per annum: 52.14 Holding cost (%) Ordering cost (€) 15 50
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Question 1 , please. Thank you!
Transcribed Image Text:Cat. ref.
Sales Unit Description
Sample
number
Sales Unit
Last 12 mo. Inventory as Reorder
sales (units) at last year Quantity
end (units) (Units)
1,000
1,000
number
Cost (€)
1
11036
Disposable Aprons (10pk)
Ear-loop Masks(Box)
Drill Type 164
Disposable Gloves Large
150ml Syringe
Intubation Tube (Adult)
Pocket Organiser Blue
2.40
100,000
2
11456
3.60
60,000
120
3
11563
1.10
220
420
250
12054
12372
4
3.50
35,400
8,500
10,000
11.30
430
120
100
97.40
6,500
120
6.
12774
20
20
12979
7.00
160
500
8
13063
CPAP Consumable Kit
187.00
400
10
Zinc Oxide Tape
Stethoscope Head
Disp. Latex Catheter
Roll-up Wheelchair Ramp
LFT Tube
13236
1.50
1,260
50
10
13454
6.25
10
16
25
11
13597
0.60
3,560
12
20
12
13999
152.50
12
44
50
13
14068
1.40
22,500
10,500
8,000
Cervical Collar
Head Wedge
14
14242
12.00
140
24
20
14310
14405
15
89.00
44
10
16
Three-Wheel Scooter
755.00
14
17
14456
Neonatal Trach. Tube
80.40
268
6.
100
14675
Mouldable Strip Paste
Sequential Comp. Pump
Toilet Safety Frame
10.20
1,250
430
18
172
100
19
14854
430.00
40
50
20
24943
25.60
560
18
20
Weeks per annum:
52.14
Holding cost (%)
Ordering cost (€)
15
50
Transcribed Image Text:1. Prepare a spreadsheet-based ABC analysis of usage value.
Classify as follows:
A items: top 20 per cent of usage value
B items: next 30 per cent of usage value
C items: remaining 50 per cent of usage value
You will need to plot cumulative usage value against the percentage of the sample
represented by that cumulative usage value. Note that you are working with a
sample of 20 inventory items, and so each item in the sample represents 5% of the
total.
2. Calculate the inventory weeks for each item, for each classification, and for
all the items in total. Does this suggest that the Operations Manager's estimate
of inventory weeks is correct? If so, what is your estimate of the overall
inventory at the end of the base year, and how much might that have increased
during the year?
In case you are unfamiliar with the term, "Inventory weeks", it is the number of weeks
of inventory, at current consumption rates, that we hold right now. You have last
year's sales for each item, and you have the current stock levels, so you can work
this figure out quite easily.
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