Problem 1:

ABC Analysis
Stock Number	Annual $ Volume	Percent of Annual $ Volume
J24	12,500	46.2
R26	9,000	33.3
L02	3,200	11.8
M12	1,550	5.8
P33	620	2.3
T72	65	0.2
S67	53	0.2
Q47	32	0.1
V20	30	0.1
		= 100.0

What are the appropriate ABC groups of inventory items?

Problem 2:

A firm has 1,000 A items (which it counts every week, i.e., 5 days), 4,000 B items (counted every 40 days), and 8,000 C items (counted every 100 days). How many items should be counted per day?

Problem 3:

Assume you have a product with the following parameters:

Holding cost per per unit

Order per order

What is the EOQ?