Question: Using the provided inventory data (see below), conduct an ABC analysis and answer the following questions: What percentage of total inventory value is represented by

Using the provided inventory data (see below), conduct an ABC analysis and answer the following questions:

  1. What percentage of total inventory value is represented by the A, B, and C categories?
  2. Which items should be classified as A, B, and C based on the ABC analysis? What are the respective inventory values and percentages for each category?
  3. Based on the ABC analysis, what recommendations would you make to the company regarding inventory management and control?

Inventory Data:

Item Number Description Quantity on Hand Unit Cost
1001 Resistor 5,000 $0.10
1002 Capacitor 2,500 $0.20
1003 Diode 1,000 $0.30
1004 Transistor 750 $0.40
1005 Integrated Circuit 500 $0.50
1006 Connector 250 $0.60
1007 Battery 100 $1.00
1008 LED 50 $1.50

Rubric:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q:

Attachments below provide insight and information in order to give you the complete question with the data needed in order to help provide answers. Screenshots attached for the Case Study Assignment...

Q:

In February 2015, Majdy I. was appointed as a Chief Executive Manager of the Manufacturing Company by Mamoun N., President. Majdy had wide executive experience in the manufacturing sector with high...

Q:

Competition in the Golf Equipment Industry Overview In 2005, the golf equipment industry was confronted by a number of troubles, including a decline in the retail value of the golf equipment sales...

Q:

please help Use Netflix's 2017 annual report to answer the following questions. Note: Consider total assets as an average assets for the calculation. A. Using the revenue and contrbution profit...

Q:

a. How many shares of stock did Electronic Arts issue during 2011 due to employees through stock plans? b. If so, what was the value of shares issued from this activity? MANAGEMENT 120A CASE...

Q:

Need help with c and d in the below problem. The attachment has calculations for a & b. Would like answer with calculations in excel so that i can understand how they were done. Thanks much :) Based...

Q:

Topic: Company Analysis - Due by Sunday Assignment: Choose a publically-traded for profit company you would like to learn more about. Find a copy of their most recent annual report using the...

Q:

Based on Chapter 5's exercise 5 ABC's Product information Current Product Expansion Product (estimate) Selling Price $14.50 ? Units produced and expected to be sold 80,000 5,000 Machine Hours 40,000...

Q:

ABC Company's current financial information (before/without expansion) Dec. 31,19X2 Dec. 31,19X1 Net Change Cash $ 50,000 $ 70,000 Accounts receivable (net) $ 120,000 $ 180,000 $ (60,000) (50,000)...

Q:

Managerial Accounting Analysis. 1) Answer the following questions using the following company statements CASH FLOWS BALANCE SHEETS INCOME STATEMENTS SHAREHOLDERS EQUITY a. Were there any Non-Cash...

Q:

Kress Products corporate charter authorizes the firm to sell 800,000 shares of $10 par common stock. At the beginning of 2011, Kress had sold 318,000 shares and had reacquired 4,500 of those shares....

Q:

The Dominican Republic and Nicaragua both produce coffee and rum. The Dominican Republic can produce 20 thousand tons of coffee per year or 10 thousand barrels of rum. Nicaragua can produce 30...

Q:

Sketch the graph o f a function y = f ( x ) such that: f ( x ) i s continuous o n [ - 2 , 0 ) ( 0 , 1 ) ( 1 , ) and discontinuous a t x = 0 and x = 1 . f ( x ) has a horizontal asymptote a t y = 3 ....

Q:

Using the data from Exercise 8 "Heights of Fathers and Sons," the P-value is 0.963. Data From Exercise 8 Write a statement that interprets the P-value and includes a conclusion about linear...

Q:

In the normal course of performing their responsibilities, auditors often conduct audits or reviews of the following: 1. Federal income tax returns of an officer of the corporation to determine...

Q:

Singh Distributing Company uses the perpetual inventory system and engaged in the following transactions during May of the current year: May 3 Purchased office supplies for cash, $22,000. 7 Purchased...

Q:

Using the data from Exercise 6 "Bear Measurements," the linear correlation coefficient is r = 0.980. Data From Exercise 6 Use Table 2-11 on page 71 to find the critical values of r. Based on a...

Q:

The table lists chest sizes (distance around chest in inches) and weights (pounds) of anesthetized bears that were measured (from Data Set 9 "Bear Measurements" in Appendix B). Data Set 9 Use the...

Q:

Design a minimum-mass symmetric three-bar truss (the area of member 1 and that of member 3 are the same) to support a load P, as was shown in Fig. 2.9. The following notation may be used: Pu = P cos...

Q:

Managements claim that the mean number of defective computer chips produced daily is not greater than 25 is in dispute. Test this hypothesis, at the 5 percent level of significance, if a sample of 5...

Q:

Historical data indicate that 4 percent of the components produced at a certain manufacturing facility are defective. A particularly acrimonious labor dispute has recently been concluded, and...

Q:

4. In a certain chemical process, it is very important that a particular solution that is to be used as a reactant have a pH of exactly 8.20. A method for determining pH that is available for...