Homework Help is Here – Start Your Trial Now!
Business
Operations Management
with a total dollar usage of $10,000,000 per year. a. What would you expect to be the number of SKUs and the total annual dollar usage for A items, B items, and C items at Southern Markets, Inc.? b. The following table provides a random sample of the unit values and annual demands of eight SKUs. Categorize these SKUs as A, B, and C items.

with a total dollar usage of $10,000,000 per year. a. What would you expect to be the number of SKUs and the total annual dollar usage for A items, B items, and C items at Southern Markets, Inc.? b. The following table provides a random sample of the unit values and annual demands of eight SKUs. Categorize these SKUs as A, B, and C items.

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...
See similar textbooks
icon
Related questions
Question

Southern Markets, Inc. is considering the use of ABC
analysis to focus on the most critical SKUs in its inventory.
Currently, there are approximately 20,000 different SKUs
with a total dollar usage of $10,000,000 per year.
a. What would you expect to be the number of SKUs and the
total annual dollar usage for A items, B items, and C items
at Southern Markets, Inc.?

b. The following table provides a random sample of the unit
values and annual demands of eight SKUs. Categorize
these SKUs as A, B, and C items.

SKU Code Unit Value Demand (Units) A104 $0.85 370 D205 $0.03 3,500 X104 $4.35 60 U404 $2.20 2,700 L205 $4.70 25 S104 $2.40 30 X205 $0.23 270 L104 $0.36 1,040
Transcribed Image Text:SKU Code Unit Value Demand (Units) A104 $0.85 370 D205 $0.03 3,500 X104 $4.35 60 U404 $2.20 2,700 L205 $4.70 25 S104 $2.40 30 X205 $0.23 270 L104 $0.36 1,040
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS