The manager of an automobile repair shop hopes to achieve a better allocation of inventory control efforts

Question:

The manager of an automobile repair shop hopes to achieve a better allocation of inventory control efforts by adopting an A-B-C approach to inventory control.

a. Given the monthly usages in the following table, classify the items in A, B, and C categories according to dollar usage:

b. Determine the percentage of items in each category and the annual dollar value for each category.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Operations Management

ISBN: 9780073525259

11th Edition

Authors: William J. Stevenson

See More Books

Question Posted: Sep 30, 2016 08:52 AM

See More Questions

The owner of an automobile repair shop studied the waiting times for customers who arrive at the shop for an oil change. The following data with waiting times in minutes were collected over a 1-month...
The marketing manager of an automobile battery manufacturer is considering the prices that should be set for some new additions to the companys product line. The Basic is the standard model, which...
The probability that an automobile repair shop sells 0, 1, 2, 3, or 4 tires on any given day is 0.25, 0.05, 0.30, 0.00, and 0.40 respectively. Construct a probability distribution for the data and...
Write a Fortran program that creates an integer array with values -123, -4, 5, 67, 890, and 12345. Prints out the array in several formatted ways. a. Print each element, on its own line, using a...
EBV is considering an investment in Softco, an early-stage software company. If Softco can execute on its business plan, then EBV estimates it would be five years until a successful exit, when Softco...
Presented below is the ledger for Sparks Co. Instructions (a) Reproduce the journal entries for the transactions that occurred on October 1, 10, and 20, and provide explanations for each. (b)...
On June 14, 1988, Thomas John Heck Jr. executed a note promising to pay Paul D. Heck $$51,000$ at 7 percent interest compounded annually. The note contains the following payment terms: Perpetual 90...
Smith Petroleum has spent $204,000 to refine 62,000 gallons of petroleum distillate, which can be sold for $6.40 a gallon. Alternatively, Smith can process the distillate further and produce 56,000...
Three children must make fair division of a painting and sculpture left them by their mother. Using the Knaster Inheritance Procedure, the value each child places on the objects is shown below....
The large turbine generator industry is a duopoly. The two firms, GE and Westinghouse, compete through Cournot quantity setting competition. The demand curve for the industry is P=100-Q, where P is...
End item P is composed of three subassemblies: K, L, and W. K is assembled using 3 Gs and 4 Hs; L is made of 2 Ms and 2 Ns; and W is made of 3 Zs. On-hand inventories are 20 Ls, 40 Gs, and 200 Hs....
The following table contains figures on the monthly volume and unit costs for a random sample of 16 items from a list of 2,000 inventory items at a health care facility: a. Develop an A-B-C...
American Girl has expanded its products beyond the original American Girl dolls, intended for nine-year-old girls. Why has this strategy worked for the company? Identify another well-known product...
How do wages in the airline industry compare to other industries?
You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $1991 and you have made every payment on time. The...
What is meant by communication networks and social networks?
What financing methods are available for an airline to acquire aircraft for its fleet?
Describe why labor is an important consideration to an airline manager?
In Problem use the matrices below. Perform the indicated operations. F 3 2 5 4 -1 1. A = 1 4 3 B = -5 8 -3 -2 -7 11 3 1. 3 4 1 C = C =1 7 -1 1 3 4 4 4 -8 1 D = -1 -1 2 F = -4 -3 -3 6. Z = 2. 1.
Privitera and Freeman (2012) constructed a scale to measure or estimate the daily fat intake of participants; the scale was called the estimated daily intake scale for fat (EDIS-F). To validate the...
The Fizer Drug Company manufactures over-the-counter and prescription drugs. Last year the companys cost of goods sold was $470 million. It carried average raw material inventory of $17.5 million,...
The Ashton Furniture Company manufactures coffee tables and chest of drawers. Last year the companys cost of goods sold was $3,700,000, and it carried inventory of oak, pine, stains, joiners, and...
The Ashton Furniture Company manufactures coffee tables and chest of drawers. Last year the companys cost of goods sold was $3,700,000, and it carried inventory of oak, pine, stains, joiners, and...
Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for...
Assume that the stock of South Gate Corporations sells for R108 and is expected to increase by a factor of 1.25 or decline by a factor of 0.83 in 10 months. As a portfolio analyst, you find a call...
Use the below information to calculate the profit or loss of a short call butterfly spread if the spot price of the underlying asset at maturity is R89.45. June 70 Call costs R1.18 June 70 Put costs...

The manager of an automobile repair shop hopes to achieve a better allocation of inventory control efforts

Question:

Usage Unit Cost Item 4021 9402 4066 6500 9280 4050 6850 3010 4400 $1,400 12 700 300 150 1,020 140 10 2,000 400 5,000

Step by Step Answer:

a Item Usage Unit Cost Usage x Unit Cost Category 402...View the full answer

Operations Management

Students also viewed these Management Leadership questions