a. The Ajex Company has several of items they store in inventory. The table below shows the

Question:

a. The Ajex Company has several of items they store in inventory. The table below shows the annual demand, and the item cost. Develop a logical classification for the inventory based on ABC:

ITEM ANNUAL USAGE (# units) ITEM COST C34 $12 4000 B99 $23 8000 V94 $19 5500 Н64 $41 1200 P77 $72 400 Y12 $62 1100 R74

b. One additional item, the M22, has a very low usage (300 per year) and a low item cost ($3 per unit), but has a very long lead time and is often difficult to obtain. How should that item be handled and why?

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Introduction To Materials Management

ISBN: 978-9386873248

8th edition

Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen

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Question Posted: Jul 01, 2019 08:41 AM

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a. The Ajex Company has several of items they store in inventory. The table below shows the

Question:

ITEM ANNUAL USAGE (# units) ITEM COST C34 $12 4000 B99 $23 8000 V94 $19 5500 Н64 $41 1200 P77 $72 400 Y12 $62 1100 R74 $33 1440

Step by Step Answer:

M22 should be handled as either an A or B item The key wou...View the full answer

Introduction To Materials Management

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