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 |

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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
