Practice Problems: Inventory Management Problem I: ABC Classification What are the appropriate ABC groups of stiek ed aten? Use whis - 15\% - 5% Problem 2. Cycle Cunaties counted per tay? Problem 2: Cycle Counting A firm bas 1.000 " A0 itenss (which it counts every week, ie, 5 days), 4,000 " B " items (counted every 40 days), and 8.000 "C items (coanted every 100 days). How many items should be counsed per day? Problems 3 : Assume you have a product with the following parameter: Annual Demand =360 units Holding cost per year =$1.00 per unit Order cost =5100 per order What is the FOO for this product? Problem 4: Given the data fiom Problem 3, and suansing a 300 - fay work year, how many orders ahould be peocessed per year? What is the crpecied time betwwin oiden? Problem 6: Hised oo fin matronal frim Prublems 3 - 5, what aould cout be if the demand was actually Preblem 7 for a simple ip wistor painit