Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 9, Problem 8P
New Wave Shelving’s inventory manager would like to start using an ABC inventory classification system. The following table shows the annual inventory usage of all the 19 component items that the company holds. Assign them to their appropriate category.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
21-
Which one of the following represent FIFO method of inventory evaluation?
a.
Old items remain in inventory
b.
Old merchandise is sold first
c.
New merchandise is sold first
d.
Average number of goods are sold
define the ABC approach to inventory management Several metrics can be used to identify an A-status:explain?
Use the ABC method of classifying inventory control over the itemsin the following inventory list. Use the total cost per item column to create thelisting. In Excel with formulas
Item Annual Usage (in Units) Unit cost ($) Total Cost per Item1 6,000 1.4 8,4002 1,500 10 15,0003 11,000 9.5 104,5004 6,500 2.5 16,2505 8,500 0.6 5,1006 7,000 14.5 101,5007 6,000 0.8…
Chapter 9 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Ch. 9 - What is the relationship between inventory and the...Ch. 9 - Suppose that a large discount retailer with a lot...Ch. 9 - Will organizations ever get to the point where...Ch. 9 - A part is produced in lots of 1,000 units. It is...Ch. 9 - Prince Electronics, a manufacturer of consumer...Ch. 9 - Terminator, Inc. manufactures a motorcycle part in...Ch. 9 - Ruby-Star Incorporated is considering two...Ch. 9 - Haley Photocopying purchases paper from an...Ch. 9 - Prob. 6PCh. 9 - Southern Markets, Inc. is considering the use of...
Ch. 9 - New Wave Shelving’s inventory manager would like...Ch. 9 - Yellow Press, Inc. buys paper in 1,500-pound rolls...Ch. 9 - Babble, Inc. buys 400 blank cassette tapes per...Ch. 9 - At Dot Com, a large retailer of popular books,...Ch. 9 - Leaky Pipe, a local retailer of plumbing supplies,...Ch. 9 - Sam’s Cat Hotel operates 52 weeks per year, 6...Ch. 9 - Consider again the kitty litter ordering policy...Ch. 9 - In a Q system, the demand rate for strawberry ice...Ch. 9 - Petromax Enterprises uses a continuous review...Ch. 9 - In a continuous review inventory system, the lead...Ch. 9 - In a two-bin inventory system, the demand for...Ch. 9 - You are in charge of inventory control of a highly...Ch. 9 - Your firm uses a continuous review system and...Ch. 9 - A company begins a review of ordering policies for...Ch. 9 - Prob. 22PCh. 9 - The Farmer’s Wife is a country store...Ch. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Prob. 26PCh. 9 - In a P system, the lead time for a box of...Ch. 9 - Suppose that Sam’s Cat Hotel in Problem 13 uses...Ch. 9 - Your firm uses a periodic review system for all...Ch. 9 - Using the same information as in Problem 21,...Ch. 9 - Wood County Hospital consumes 1,000 boxes of...Ch. 9 - A golf specialty wholesaler operates 50 weeks per...Ch. 9 - What is the EOQ and what is the lowest total cost?Ch. 9 - What is the annual cost of holding inventory at...Ch. 9 - Prob. 3AMECh. 9 - Prob. 4AMECh. 9 - Prob. 5AMECh. 9 - Prob. 6AMECh. 9 - Comment on the sensitivity of the EOQ model to...Ch. 9 - Consider the pressures for small versus large...Ch. 9 - Prob. 2VCCh. 9 - The Marker Maker© product recently experienced an...Ch. 9 - Put yourself in Sue McCaskey’s position and...Ch. 9 - By how much do your recommendations for these two...
Additional Business Textbook Solutions
Find more solutions based on key concepts
2. Identify four people who have contributed to the theory and techniques of operations management.
Operations Management: Sustainability and Supply Chain Management (12th Edition)
What is precedent, and how does it affect common law?
Business in Action (8th Edition)
2. In what circumstances might a market-pull approach or a technology-push approach to new-product design be th...
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
What is precedent, and how does it affect common law?
Business in Action
There is a huge demand in the United States and elsewhere for affordable women’s clothing. Low-cost clothing re...
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
Many companies including Company OM tried to implement dynamic pricing in their ticketing system. The dynamic p...
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Discuss customer service level for an inventory systemwithin the context of quality management.arrow_forwardNew Wave Shelving’s Inventory Manager would like to start using an ABC inventory classification system. The following table shows the annual inventory usage of all the 19 component items that the company holds. Assign them to their appropriate category.arrow_forwardABC INVENTORY CLASSIFICATION A company trades with a number of items and the management is interested in classifying the items contained in the warehouse according to the order of importance, by the capital retained in the warehouse.the items contained in the warehouse according to the order of importance, by the capital retained in the warehouse.The following is a list of the items the company deals with and their respective demand and cost.demand and cost. d) Make a sketch of the graph generated from the ABC classification.arrow_forward
- Briefly describe the components of inventory management?arrow_forwardABC INVENTORY CLASSIFICATION A company trades with a number of items and the management is interested in classifying the items contained in the warehouse according to the order of importance, by the capital retained in the warehouse.the items contained in the warehouse according to the order of importance, by the capital retained in the warehouse.The following is a list of the items the company deals with and their respective demand and cost.demand and cost. c) Will you be able to decide with the classification tool which of the items can no longer be marketed by the company?arrow_forwardDiscuss the ABC inventory classification system and indicate it's benifits?arrow_forward
- can you please help me answer this question.... Rebar Company prepared the following analysis of its year-end inventory on December 31. First, determine the total lower of cost or market value for each product in Rebar Company's inventory. Second, prepare the journal entry needed at year-end to value the inventory at LCM, if applicable. Historical Cost Replacement Cost Product Quantity per unit per unit A 17 $430 $499 B 140 325 299 C 38 75 69arrow_forwardABC INVENTORY CLASSIFICATION A company trades with a number of items and the management is interested in classifying the items contained in the warehouse according to the order of importance, by the capital retained in the warehouse.the items contained in the warehouse according to the order of importance, by the capital retained in the warehouse.The following is a list of the items the company deals with and their respective demand and cost.demand and cost. a) Perform an ABC classification considering that the company wishes to have control of 82% of the valorization.arrow_forwardConduct a comprehensive comparative analysis between the Wilson approach and the ABC analysis method for inventory management.arrow_forward
- Inventory is the raw materials, work-in-process products and finished goods from the portion of a business's assets that are ready or will be ready for sale. Judge THREE (3) effectiveness of perpetual inventory for the food service organization and explain the impact of the system on the purchasing process. Please answer as quick as possible.arrow_forward2. The inventory manager of Daraz hopes to achieve a better allocation of inventory control efforts by adopting an A-B-C approach to inventory control. Given the monthly usages in the following table, classify the items in A, B, and C categories to Taka usage Item X1 X2 X3 Х4 X5 X6 X7 X8 Usage 150 70 140 270 200 400 700 650 Unit 755 890 1625 210 410 60 30 25 Costarrow_forwardEspecially for wholesalers and retailers involved in the distribution channels for consumer packaged goods, inventory management is a careful balancing act between: supply and demand. controlled supply and variable demand. lower inventory levels and acceptable customer service levels. variable inventory levels and consistent customer service levels.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
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
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY