Question: The NextGen distribution is working on improving inventory management by performing anABC Analysis. The management team considers the following factors for the analysis: hits and
The NextGen distribution is working on improving inventory management by performing anABC Analysis. The management team considers the following factors for the analysis: hits and criticality to operations. The criticality to operations has been calculated using the Analytical Hierarchy Process AHP by an outside consultant, Given the initial ABC categories combine these two categories to come up with the final classification. Assume A item is B is and C is point. And criticality is two times as important as hits. Finally, top is a next B and the rest are C items. Use three decimal place accuracy for ratio and cumulative ratio calculations when needed, eg For the question above, perform the final ABC Analysis by combining hits and criticality.Based on the final classification match the product with the respective ABC categories below.
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