The South African company AFROS sells safety equipment from their central warehouse in Johannesburg. AFROS applies an
Question:
The South African company AFROS sells safety equipment from their central warehouse in Johannesburg. AFROS applies an annual counting of the inventories at approximately 55,000 articles.
The supply manager is not satisfied with the record accuracy and has decided to increase the stock-counting. A maximum of 1,100 articles can be counted per day. Approximately 20% of the articles represent 80% of the inventory value, A items. The manager decides to introduce cyclic counting in which A items should be counted once a month, B items once every 3 months, and C items once every 6 months.
What is the maximum number of articles that can be classified as B items? Assume 20 working days per month.
Step by Step Answer:
Operations Management Sustainability And Supply Chain Management
ISBN: 9780135173626
13th Edition
Authors: Jay Heizer, Barry Render, Chuck Munson