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 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 B class inventory XYZ3 a 0 XYZ1b0 XYZ2CO XYZ3 and XYZ4 do None is correcte o Maha industries produces a product whose anticipated demand for the six periods is 263, 256, 301, 312, 304, and 294. The firm chooses chase demand production strategy. The regular production cost is RO 12 per unit with a maximum regular production of 280 units per period. While, the overtime and subcontract costs are RO 20 and RO 25 per unit respectively. There is no limit on subcontracting; however, maximum overtime production capacity is 10. Average inventory holding cost is PRO 5 per unit per period. What will be the total cost inventory holding None is correcta o 19668b O.CO 800 do 1275 e o Maha industries produces a product whose anticipated demand for the six periods is 263, 256, 301, 312, 304, and 294. If the firm has adopted level production strategy with a constant production of 280 units per period. The regular production cost is RO 12 per unit, whereas the overtime and subcontract costs are RO 20 and RO 25 per unit respectively. There is no limit on subcontracting; however, maximum overtime production capacity is 10. Average inventory holding cost is RO 5 per unit per ?period. What is the Total Ending inventory None is correcta o 78 bo 41 CO 0 do 17e