Terumo Industries Ltd has a large manufacturing facility in Taiwan where the company manufactures majority of...

 

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Terumo Industries Ltd has a large manufacturing facility in Taiwan where the company manufactures majority of their items. In order to facilitate a smooth production, the company keeps the needed items in stock. Table Q4 lists the total items the company keeps in stock, with the annual usage and item unit cost. Item P-3340 P-8085 P-9056 P-9661 P-6917 P-6354 P-4297 P-7381 P-2741 P-6828 P-7350 P-5980 P-0708 P-3645 P-8431 Table Q4 Annual Usage 2,600 1,600 11,000 22 16 1,100 8,500 9,400 7,800 14,000 890 13,350 7 1,905 3,600 Unit Cost (in OMR) b. Prepare a Pareto Chart showing the three classes of stock. 0.850 6.550 27.000 28.750 1,885.000 2.500 5.300 1.250 6.500 0.690 26.000 12.650 31.750 81.000 13.050 a. Categorize the items in the company stock as Class A, B and C based on the 70-20-10 rule. (15 Marks) Terumo Industries Ltd has a large manufacturing facility in Taiwan where the company manufactures majority of their items. In order to facilitate a smooth production, the company keeps the needed items in stock. Table Q4 lists the total items the company keeps in stock, with the annual usage and item unit cost. Item P-3340 P-8085 P-9056 P-9661 P-6917 P-6354 P-4297 P-7381 P-2741 P-6828 P-7350 P-5980 P-0708 P-3645 P-8431 Table Q4 Annual Usage 2,600 1,600 11,000 22 16 1,100 8,500 9,400 7,800 14,000 890 13,350 7 1,905 3,600 Unit Cost (in OMR) b. Prepare a Pareto Chart showing the three classes of stock. 0.850 6.550 27.000 28.750 1,885.000 2.500 5.300 1.250 6.500 0.690 26.000 12.650 31.750 81.000 13.050 a. Categorize the items in the company stock as Class A, B and C based on the 70-20-10 rule. (15 Marks)