Question: Calculate the inventory weeks for each item, for each classification, and for all the items in total. Does this suggest that the Operations Manager's estimate

Calculate the inventory weeks for each item, for each classification, and for all the items in total. Does this suggest that the Operations Manager's estimate of inventory weeks is correct? If so, what is your estimate of the overall inventory at the end of the base year, and how much might that have increased during the year?

In case you are unfamiliar with the term '' Inventory weeks'' it is the number of weeks inventory, at the current consumption rate, and you have the current stock levels, so you can work this figure out easily.

Classifications are ABC

Sample Number

Reference

Number

Sales unit Description

Sales unit Cost (a)

Last 12 months of sales units (b)

Usage Value

(a*b)

Percentage in Total Usage Value

Cumulative Percentage

Analysis

6

12774

Intubation tube

97.40

6500

633100

40.41%

40.41%

A

1

11036

Disposable Apron(10k)

2.40

100000

240000

15.32%

55.72%

B

2

11456

Ear-loop Mask(Box)

3.60

60000

216000

13.70%

69.51%

C

19

14854

Sequential Comp. Pump

430.00

430

184900

11.80%

81.31%

C

4

12054

Disposable gloves Large

3.50

35400

123900

7.91%

89.22%

C

8

13063

CPAP Consumable Kit

187

400

74800

4.77%

93.99%

C

17

14456

Neonatal Trach. Tube

80.40

268

21547.20

1.38%

95.37%

C

13

14068

LFT Tube

1.40

125000

17500

1.12%

96.48%

C

20

24943

Toilet Safety Frame

25.60

560

14336

0.91%

97.40%

C

18

14675

Mouldable Strip Paste

10.20

1250

12750

0.81%

98.21%

C

16

11405

Three-Wheel Scooter

755

14

10570

0.67%

98.89%

C

5

12372

150ml Syringe

11.30

430

4859

0.31

99.20%

C

15

14310

Head Wedge

89

44

3916

0.25%

99.45%

C

11

13597

Disp. Latex Catheter

0.60

3560

2136

0.14%

99.58%

C

9

13236

Zinc Oxide Tape

1.50

1260

1890

0.12%

99.70%

C

12

13999

Roll-up Wheel Chair Ramp

152.50

12

1830

0.12%

99.82%

C

14

14242

Cervical collar

12

140

1680

0.11%

99.93%

C

7

12979

Pocket organiser Blue

7

120

840

0.05%

99.98%

C

3

11563

Drill Type 164

1.10

220

242

0.02%

100%

C

10

13454

Statoscope Head

6.25

10

62.50

0.00%

100%

C

Total

1 566 858.70

C

C

 Calculate the inventory weeks for each item, for each classification, and

Sales Unit Description Sample number Cat. ref. number Sales Unit Cost () 1 - 234567890HQ84BBNB99 11036 11456 11563 12054 12372 12774 12979 13063 13236 13454 13597 13999 14068 14242 14310 14405 14456 14675 14854 24943 10 11 12 13 14 15 16 17 18 19 Disposable Aprons (10pk) Ear-loop Masks(Box) Drill Type 164 Disposable Gloves Large 150ml Syringe Intubation Tube (Adult) Pocket Organiser Blue CPAP Consumable Kit Zinc Oxide Tape Stethoscope Head Disp. Latex Catheter Roll-up Wheelchair Ramp LFT Tube Cervical Collar Head Wedge Three-Wheel Scooter Neonatal Trach. Tube Mouldable Strip Paste Sequential Comp. Pump Toilet Safety Frame Last 12 mo. Inventory as Reorder sales (units) at last year Quantity end (units) (Units) 100,000 1,000 60,000 120 1,000 220 420 250 35,400 8,500 10,000 430 120 100 6,500 20 20 120 160 500 400 2 10 1,260 50 10 16 25 3,560 12 20 12 44 50 22,500 10,500 8,000 140 24 20 44 2 10 14 5 5 268 6 100 1.250 172 100 40 50 560 18 20 2.40 3.60 1.10 3.50 11.30 97.40 7.00 187.00 1.50 6.25 0.60 152.50 1.40 12.00 89.00 755.00 80.40 10.20 430.00 25.60 430 Weeks per annum 52.14 Holding cost (%) Ordering cost () 15 501 Sales Unit Description Sample number Cat. ref. number Sales Unit Cost () 1 - 234567890HQ84BBNB99 11036 11456 11563 12054 12372 12774 12979 13063 13236 13454 13597 13999 14068 14242 14310 14405 14456 14675 14854 24943 10 11 12 13 14 15 16 17 18 19 Disposable Aprons (10pk) Ear-loop Masks(Box) Drill Type 164 Disposable Gloves Large 150ml Syringe Intubation Tube (Adult) Pocket Organiser Blue CPAP Consumable Kit Zinc Oxide Tape Stethoscope Head Disp. Latex Catheter Roll-up Wheelchair Ramp LFT Tube Cervical Collar Head Wedge Three-Wheel Scooter Neonatal Trach. Tube Mouldable Strip Paste Sequential Comp. Pump Toilet Safety Frame Last 12 mo. Inventory as Reorder sales (units) at last year Quantity end (units) (Units) 100,000 1,000 60,000 120 1,000 220 420 250 35,400 8,500 10,000 430 120 100 6,500 20 20 120 160 500 400 2 10 1,260 50 10 16 25 3,560 12 20 12 44 50 22,500 10,500 8,000 140 24 20 44 2 10 14 5 5 268 6 100 1.250 172 100 40 50 560 18 20 2.40 3.60 1.10 3.50 11.30 97.40 7.00 187.00 1.50 6.25 0.60 152.50 1.40 12.00 89.00 755.00 80.40 10.20 430.00 25.60 430 Weeks per annum 52.14 Holding cost (%) Ordering cost () 15 501

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