A distributor of building supplies sells a line of designer trim to small construction companies. The line is described in the table below: A) Show how this line would be classified using an ABC analysis.

B) Explain how this company will use the information developed from the ABC analysis.

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Item 1245 2137 5879 4258 9873 6891 4281 1597 3541 7413 9512 5921 4832 2218 9867 Annual Demand 48 52 185 732 215 75 550 95 334 488 92 110 214 12 45 Value ($/Unit) $5.50 $4.75 $3.55 $4.35 $3.25 $7.50 $3.75 $8.00 $4.95 $2.50 $5.50 $5.25 $3.95 $9.50 $8.75 Item 1245 2137 5879 4258 9873 6891 4281 1597 3541 7413 9512 5921 4832 2218 9867 Annual Demand 48 52 185 732 215 75 550 95 334 488 92 110 214 12 45 Value ($/Unit) $5.50 $4.75 $3.55 $4.35 $3.25 $7.50 $3.75 $8.00 $4.95 $2.50 $5.50 $5.25 $3.95 $9.50 $8.75

Answer rating: 100% (QA)

A Step 1 Calculate annual demand ... View the full answer