Question: You are considering using ABC analysis to classify some SKUs into three categories: those that will be delivered daily from their supplier Class A items),

You are considering using ABC analysis to

You are considering using ABC analysis to classify some SKUs into three categories: those that will be delivered daily from their supplier Class A items), those that will be controlled using a continuous review system (B items), and those that will be held in a two bin system (C tems). The following table shows the annual dollar usage for a sample of eight SKUs. SKU Dollar Value Annual Usage 1 $1.00 30,000 21 $5.00 1000 31 $4.10 900 4 $1.20 10.000 5 $1.00 500 6 $1.00 5,000 7 $0.90 300 8 $0.02 1.100 Based on the percentages of dollar usage, which products are categorized as "A"? Not enough information O SKU 1, SKU 2, SKU 3 O SKU 1, SKU 2 O SKU 1, SKU 2, SKU 4

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!