Question: A company would like to classify its inventory systems using ABC inventory classification system. The rules for ABC classification are STRICTLY applied such that 80%

A company would like to classify its inventory
A company would like to classify its inventory
A company would like to classify its inventory systems using ABC inventory classification system. The rules for ABC classification are STRICTLY applied such that 80% cumulative budget is assigned to A class inventory items. The next 15% cumulative budget is assigned to B class inventory items, and Only 5% of the cumulative budget is assigned to C class inventory items. The inventory items are XYZ1, XYZ2, XYZ3, and XYZ4 respectively. The Annual demands (units per year) for these items are 290,457, and 159, and 577 respectively. Also, the corresponding per unit prices are 19, 33, 126, and 90 respectively measured in OMR. Which items (among, XYZ1, XYZ2, XYZ3, and XYZ4) are classified as A class inventory O a. None is correct O b. Both XYZ3 and XYZ4 Oc. All items O d. Only XYZ3 o e XYZ 1 only Alpha retail store predicts an annual demand of 5280 kgs of a food product. It costs RO 100 to make and receive an order, and it takes 12 workdays to receive it. The annual holding cost is 15 % of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. What is the expected time (in days) between orders? Round-up to the nearest integer . 207 O b111 O c. 185 O d. None is correct 105 o e. A

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