Hershey Office Supply, Inc. produces office supplies that are sold primarily to corporate users. Elizabeth Rigby, vice
Question:
Hershey Office Supply, Inc. produces office supplies that are sold primarily to corporate users. Elizabeth Rigby, vice president of logistics, would like to move ahead on a project that was started about a year ago. At that time, a group of logistics analysts developed a list of stock-keeping units (SKUs) and their annual sales
SKU | Annual Sales |
A2067 | $541 |
A2133 | $2,471 |
A4142 | $110 |
A6916 | $287 |
A7025 | $149 |
A7428 | $266 |
A7850 | $338 |
B1139 | $104 |
B2155 | $311 |
B4151 | $90 |
B5568 | $121 |
B7116 | $604 |
C2032 | $442 |
C5816 | $215 |
C7631 | $178 |
C8605 | $248 |
C9323 | $1,167 |
C9814 | $1,374 |
F3300 | $1,640 |
F6018 | $168 |
F9575 | $13,364 |
G5967 | $115 |
T1192 | $189 |
T1801 | $158 |
T4470 | $678 |
T8594 | $127 |
T8994 | $766 |
T9039 | $1,004 |
T9204 | $1,992 |
T9800 | $488 |
X1561 | $5,699 |
X2661 | $3,146 |
X9988 | $4,142 |
Y1247 | $202 |
Y1645 | $231 |
Y2133 | $100 |
Y3118 | $873 |
Y4100 | $134 |
Y4587 | $8,339 |
Y4765 | $141 |
Y6685 | $368 |
Y8727 | $403 |
Y9971 | $95 |
| $53,578 |
She would like to develop tighter inventory controls for SKUs. Your task is to prepare the following analysis for her.
A) Classify the SKUs in the list as A, B, or C items based on their annual sales revenues, where A items generate the first 80 percent of the revenues, B items generate the next 15 percent, and C items generate the remaining 5 percent.
B) Prepare a report that summarizes the SKU count, the percent of total SKUs, the sum of annual sales, and the percent of total sales by class (A, B, and C).
C) Develop an x-y scatter chart showing the cumulative percent of items (x) and the cumulative percent sales (y).
Financial Theory and Corporate Policy
ISBN: 978-0321127211
4th edition
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri