Question: Southern Markets Inc is considering the use of ABC analysis

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 Citems.


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  • CreatedNovember 07, 2013
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