A company would like to classify its inventory systems using ABC inventory classification system. The rules for ABC classification are STRICTLY applied such that 80% cumulative budget is assigned to A class inventory items. The next 15% cumulative budget is assigned to B class inventory items, and Only 5% of the cumulative budget is assigned to C class inventory items. The inventory items are XYZ1, XYZ2, XYZ3, and XYZ4 respectively. The Annual demands (units per year) for these items are 290, 457, and 159, and 577 respectively. Also, the corresponding per unit prices are 19, 33, 126, and 90 respectively measured in OMR. Which items (among, XYZ1, XYZ2, XYZ3, and XYZ4) are classified as A class inventory O a. Only XYZ3 O b. XYZ1 only O c. None is correct d. Both XYZ3 and XYZ4 e. All items
A company would like to classify its inventory systems using ABC inventory classification system. The rules for ABC classification are STRICTLY applied such that 80% cumulative budget is assigned to A class inventory items. The next 15% cumulative budget is assigned to B class inventory items, and Only 5% of the cumulative budget is assigned to C class inventory items. The inventory items are XYZ1, XYZ2, XYZ3, and XYZ4 respectively. The Annual demands (units per year) for these items are 290, 457, and 159, and 577 respectively. Also, the corresponding per unit prices are 19, 33, 126, and 90 respectively measured in OMR. Which items (among, XYZ1, XYZ2, XYZ3, and XYZ4) are classified as A class inventory O a. Only XYZ3 O b. XYZ1 only O c. None is correct d. Both XYZ3 and XYZ4 e. All items
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
Related questions
Question
9-
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Recommended textbooks for you
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning