Given the following information, you need to conduct an ABC analysis on the number of items...
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Given the following information, you need to conduct an ABC analysis on the number of items sold versus the annual value of usage. Item A1 A2 A3 A4 45 AS 46 Ab A7 AT A8 AD A9 A10 A11 A12 A13 A14 A15 Number of Units Sold 782 687 835 415 372 372 35 25 577 577 420 420 539 430 282 819 565 867 550 Unit Cost 48.38 63.19 77.13 6.86 92.88 89.60 89.60 62.46 Quantity 82.91 78.49 5.34 3:34 0.08 14.64 2.14 64.38 71.03 Note: you need to make a twodimensional array as below and specify corresponding items for each cell. Then it would help if you discussed strategic versus nonstrategic things. Then interpret and discuss the findings for each cell of the below table. For instance, what would be your suggestion regarding the BC items? But you need to discuss all cells. Your discussion should be like a brief report to your manager. The threshold for A categories is 80%, B category is 15%, and C category is 5%. Tip: You need to open an excel file. And copy the items twice. Regarding the Value analysis, you must first determine the total annual value (NO times Unit Cost) and then sort things based on the yearly value in descending order. In the second table, you need to sort the items in descending order and conduct the ABC analysis for the quantity analysis. Tip: Once you complete the ABC analysis separately for quantity and annual usage value, you complete the below table as we exercised in class. A B C A Value B C
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To conduct an ABC analysis on the number of items sold versus the annual value of usage we will follow these steps 1 Calculate the annual value for each item Value Unit Cost Number of Units Sold 2 Sor View the full answer
Related Book For
Managerial Decision Modeling with Spreadsheets
ISBN: 9780136115830
3rd edition
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair
Posted Date:
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