To classify: The inventory items using ABC classification system. Introduction: ABC classification system: It is an inventory method for classifying the items under three different categories as: A: most valuable items which accounts to 70-80 percent of annual consumption value. A-items typically account for 10-20 percent of the total inventory. B: intermediate items which accounts to 15-25 percent of annual consumption value. B-items typically account for 50 percent of total inventory. C: least valuable items which accounts to 5 percent of annual consumption value. C-items account for 30 percent of total inventory. The classification is done for the firm to concentrate more on the critical few items rather than the trivial many items.

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Answer 1

Question

Chapter 12, Problem 2P

a)

Summary Introduction

To classify: The inventory items using ABC classification system.

Introduction:

ABC classification system:

It is an inventory method for classifying the items under three different categories as:

A: most valuable items which accounts to 70-80 percent of annual consumption value. A-items typically account for 10-20 percent of the total inventory.

B: intermediate items which accounts to 15-25 percent of annual consumption value. B-items typically account for 50 percent of total inventory.

C: least valuable items which accounts to 5 percent of annual consumption value. C-items account for 30 percent of total inventory.

The classification is done for the firm to concentrate more on the critical few items rather than the trivial many items.

b)

Summary Introduction

To determine: How BI person can use the information gathered from the classification.

c)

Summary Introduction

To determine: Why BI person placed item A2 in A-class items.

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Students have asked these similar questions

. The following table contains figures on the monthly volume and unit costs for a random sample of 16 items from a list of 2,000 inventory items at a health care facility. a-Develop an A-B-C classification for these items. b-Given the monthly usages in the following table, classify the items in A, B, and C categories according to dollar usage. c- Determine the percentage of items in each category and the annual dollar value for each category for part b. The principal table are in the picture below

So, what exactly is the function of finished-goods inventory?

Given the information below, conduct an ABC analysis and determine which items should be classified as A, B, and C. Which items do you suggest the firm keep the tightest control over? Explain. Item Part Number Item Cost Quantity In Stock 142-AZ $546.00 318 4392-GF $45.00 1250 86935-ES $15.35 3546 173-DC $653.00 1876 999-BA $199.00 526 7846-NM $23.00 973 2765-OP $385.00 790 103-VX $12.50 4875 2648-YT $16.75 5185

Answer 2

Question

Chapter 12, Problem 2P

a)

Summary Introduction

To classify: The inventory items using ABC classification system.

Introduction:

ABC classification system:

It is an inventory method for classifying the items under three different categories as:

A: most valuable items which accounts to 70-80 percent of annual consumption value. A-items typically account for 10-20 percent of the total inventory.

B: intermediate items which accounts to 15-25 percent of annual consumption value. B-items typically account for 50 percent of total inventory.

C: least valuable items which accounts to 5 percent of annual consumption value. C-items account for 30 percent of total inventory.

The classification is done for the firm to concentrate more on the critical few items rather than the trivial many items.

b)

Summary Introduction

To determine: How BI person can use the information gathered from the classification.

c)

Summary Introduction

To determine: Why BI person placed item A2 in A-class items.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 2P

a)

Summary Introduction

To classify: The inventory items using ABC classification system.

Introduction:

ABC classification system:

It is an inventory method for classifying the items under three different categories as:

A: most valuable items which accounts to 70-80 percent of annual consumption value. A-items typically account for 10-20 percent of the total inventory.

B: intermediate items which accounts to 15-25 percent of annual consumption value. B-items typically account for 50 percent of total inventory.

C: least valuable items which accounts to 5 percent of annual consumption value. C-items account for 30 percent of total inventory.

The classification is done for the firm to concentrate more on the critical few items rather than the trivial many items.

b)

Summary Introduction

To determine: How BI person can use the information gathered from the classification.

c)

Summary Introduction

To determine: Why BI person placed item A2 in A-class items.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 2P

a)

Summary Introduction

To classify: The inventory items using ABC classification system.

Introduction:

ABC classification system:

It is an inventory method for classifying the items under three different categories as:

A: most valuable items which accounts to 70-80 percent of annual consumption value. A-items typically account for 10-20 percent of the total inventory.

B: intermediate items which accounts to 15-25 percent of annual consumption value. B-items typically account for 50 percent of total inventory.

C: least valuable items which accounts to 5 percent of annual consumption value. C-items account for 30 percent of total inventory.

The classification is done for the firm to concentrate more on the critical few items rather than the trivial many items.

b)

Summary Introduction

To determine: How BI person can use the information gathered from the classification.

c)

Summary Introduction

To determine: Why BI person placed item A2 in A-class items.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 2P

a)

Summary Introduction

To classify: The inventory items using ABC classification system.

Introduction:

ABC classification system:

It is an inventory method for classifying the items under three different categories as:

A: most valuable items which accounts to 70-80 percent of annual consumption value. A-items typically account for 10-20 percent of the total inventory.

B: intermediate items which accounts to 15-25 percent of annual consumption value. B-items typically account for 50 percent of total inventory.

C: least valuable items which accounts to 5 percent of annual consumption value. C-items account for 30 percent of total inventory.

The classification is done for the firm to concentrate more on the critical few items rather than the trivial many items.

b)

Summary Introduction

To determine: How BI person can use the information gathered from the classification.

c)

Summary Introduction

To determine: Why BI person placed item A2 in A-class items.

Answer 6

Chapter 12, Problem 2P

a)

Summary Introduction

To classify: The inventory items using ABC classification system.

Introduction:

ABC classification system:

It is an inventory method for classifying the items under three different categories as:

A: most valuable items which accounts to 70-80 percent of annual consumption value. A-items typically account for 10-20 percent of the total inventory.

B: intermediate items which accounts to 15-25 percent of annual consumption value. B-items typically account for 50 percent of total inventory.

C: least valuable items which accounts to 5 percent of annual consumption value. C-items account for 30 percent of total inventory.

The classification is done for the firm to concentrate more on the critical few items rather than the trivial many items.

Answer 7

Chapter 12, Problem 2P

a)

Summary Introduction

To classify: The inventory items using ABC classification system.

Introduction:

ABC classification system:

It is an inventory method for classifying the items under three different categories as:

A: most valuable items which accounts to 70-80 percent of annual consumption value. A-items typically account for 10-20 percent of the total inventory.

B: intermediate items which accounts to 15-25 percent of annual consumption value. B-items typically account for 50 percent of total inventory.

C: least valuable items which accounts to 5 percent of annual consumption value. C-items account for 30 percent of total inventory.

The classification is done for the firm to concentrate more on the critical few items rather than the trivial many items.

Answer 8

b)

Summary Introduction

To determine: How BI person can use the information gathered from the classification.

Answer 9

b)

Summary Introduction

To determine: How BI person can use the information gathered from the classification.

Answer 10

c)

Summary Introduction

To determine: Why BI person placed item A2 in A-class items.

Answer 11

c)

Summary Introduction

To determine: Why BI person placed item A2 in A-class items.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 12 - Ethical Dilemma Wayne Hills Hospital in tiny...Ch. 12 - Prob. 1DQ Ch. 12 - Prob. 2DQ Ch. 12 - What is the purpose of the ABC classification...Ch. 12 - Prob. 4DQ Ch. 12 - Explain the major assumptions of the basic EOQ...Ch. 12 - Prob. 6DQ Ch. 12 - Prob. 7DQ Ch. 12 - Prob. 8DQ Ch. 12 - What impact does a decrease in setup time hive on...

Solution Summary: The author explains the ABC classification system, which is an inventory method for classifying the items under three different categories.

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To determine: How BI person can use the information gathered from the classification.

To determine: Why BI person placed item A2 in A-class items.

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Chapter 12 Solutions