L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plantclassify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.)Item number 2349 should be classified asItemCode12892347234923632394239567827844821083109111Item number 8210 should be classified asL. Houts Plastics Charlotte Inventory LevelsAvg.Inventory (units)Value($/unit)3.75420300120606032257620124.002.501.801.752.251.152.052.002.003.00DollarVolume1,2003001052325% of DollarVolume34.728.683.040.670.7114183,456For the following three questions, consider only items 1289, 2349, and 8210 from the above table for relative classification (these are some of the items for which you computed the metrics).Based on the percentages of dollar volume, item number 1289 should be classified as0.410.52

The A-B-C approach classifies inventory items according to some measure of importance, usually…

L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plar classify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Item Code 1289 2347 2349 2363 2394 2395 6782 7844 8210 Item number 8210 should be classified as 8310 9111 L. Houts Plastics Charlotte Inventory Levels Avg. Inventory (units) Value ($/unit) Dollar Volume 3.75 4.00 2.50 1.80 1.75 2.25 420 2288 22 300 120 60 60 35 20 12 5 7 6 1.15 2.05 2.00 2.00 3.00 1,200 300 105 0 23 25 % of Dollar Volume 14 18 3,456 For the following three questions, consider only items 1289, 2349, and 8210 from the above table for relative classification (these are some of the items for which you computed the metrics). Based on the percentages of dollar volume, item number 1289 should be classified as Item number 2349 should be classified as 34.72 8.68 7 3.04 1 0.67 0.71 7 0.41 0.52 D

L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plar classify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Item Code 1289 2347 2349 2363 2394 2395 6782 7844 8210 Item number 8210 should be classified as 8310 9111 L. Houts Plastics Charlotte Inventory Levels Avg. Inventory (units) Value ($/unit) Dollar Volume 3.75 4.00 2.50 1.80 1.75 2.25 420 2288 22 300 120 60 60 35 20 12 5 7 6 1.15 2.05 2.00 2.00 3.00 1,200 300 105 0 23 25 % of Dollar Volume 14 18 3,456 For the following three questions, consider only items 1289, 2349, and 8210 from the above table for relative classification (these are some of the items for which you computed the metrics). Based on the percentages of dollar volume, item number 1289 should be classified as Item number 2349 should be classified as 34.72 8.68 7 3.04 1 0.67 0.71 7 0.41 0.52 D

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

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Item Code 1289 2347 2349 2363 2394 2395 6782 7844 8210 8310 9111 L. Houts Plastics Charlotte Inventory Levels Dollar Avg. Inventory (units) Volume 380 300 120 75 60 30 20 12 5 7 6 Value ($/unit) 3.75 4.00 2.50 1.50 1.75 2.25 1.15 2.05 1.60 2.00 3.00 1,200 300 105 23 25 14 18 3,298 % of Dollar Volume 36.39 9.10 3.18 0.70 0.75 0.42 0.55
Part 1 L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) For the following three questions, consider only items 1289, 2349,8210 from the above table for relative classification (these are some of the items for which you computed the metrics) A) Based on the percentages of follar colume, item number 1289 should be classified as _ (A,B,C) B) Item number 2349 should be classified as _ (A,B,C) c) Item number 8210 should be classified as _ (A.B, C)
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: 12 units at $47 Jan. 11 Aug. 13 20 units at $48 Nov. 30 $564 960 735 Avaliable for sale $2,259 There are 20 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-sout (LIFO) method; and (c) weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar). a First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost Inventory Purchase Purchase 15 units at $49 47 units 1,284 X
L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) For the following three questions, consider only items 1289, 2349, and 8210from the above table for relative classification (these are some of the items for which you computed the metrics). Based on the percentages of dollar volume, item number 1289 should be classified as Item number 2349 should be classified as Item number 8210 should be classified as .
Gringer’s Plastics provides plastic parts to the shipbuilding industry. They gathered the following information on their inventory. Based on this data, what products would be considered A class inventory? Product Unit Cost Volume 1 $ 12.50 11,200 2 $ 325.00 160 3 $ 9.75 23,786 4 $ 8.50 29,590 5 $ 175.60 80 6 $ 1,125.99 26 7 $ 756.25 41 8 $ 24.99 5,230 9 $ 109.25 98 10 $ 33.00 7,865 11 $ 6.75 3,489 12 $ 550.80 26 Group of answer choices A. 1, 3, 4, 10 B. 2, 3, 4, 8 C. 1, 2, 4, 7 D. 2, 4, 7
L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Item number 2349 should be classified as Item Code Item number 8210 should be classified as 1289 2347 2349 2363 2394 2395 6782 7844 8210 8310 9111 L. Houts Plastics Charlotte Inventory Levels Avg. Inventory (units) 380 300 120 70 POHONNO 60 25 20 12 5 7 Value ($/unit) 3,25 6 4.00 2.50 1.30 1.75 2.25 1.15 2.05 2.00 2.00 3.00 Dollar Volume 1,200 300 105 23 25 70 % of Dollar Volume 39.00 9.75 3.41 14 18 3,077 For the following three questions, consider only items 1289, 2349, and 8210 from the above table for relative classification (these are some of the items for which you computed the…
Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant assify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Item number 2349 should be classified as Item Code 1289 2347 2349 2363 2394 2395 6782 7844 8210 8310 9111 Item number 8210 should be classified as L. Houts Plastics Charlotte Inventory Levels Value ($/unit) 3.75 4.00 2.50 1.50 1.75 2.00 1.15 2.05 1.80 2.00 3.00 Avg. Inventory (units) 400 300 120 18822 75 60 30 20 978 Dollar Volume 6 1,200 300 105 23 25 O % of Dollar Volume 35.59 8.90 14 18 3,372 For the following three questions, consider only items 1289, 2349, and 8210 from the above table for relative classification (these are some of the items for which you computed the metrics). Based on the…
L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Item Code Avg. Inventory (units) Value ($/unit)1289 380 3.252347 300 4.002349 120 2.502363 70 1.302394 60 1.752395 25 1.756782 20 1.157844 12 2.058210 10…
Determine an A-B-C classification for these items: Which items are A, B, and C - explain how you derive the answers? Use a table or excel spreadsheet to illustrate your work. Item Unit Cost Annual Volume (000)1 300 252 90 303 30 604 50 105 15 706 100 407 10 60 Hint:Determine the Annual Dollar Value (Unit Cost * Annual Volume) for each item and the sum of the individual Annual Dollar Values. Arrange the items in descending order based on Annual Dollar Values. Then, determine the percentage of items and the percentage of…
. The following table contains figures on the monthly volume and unit costs for a random sample of 16 items from a list of 2,000 inventory items at a health care facility. a-Develop an A-B-C classification for these items. b-Given the monthly usages in the following table, classify the items in A, B, and C categories according to dollar usage. c- Determine the percentage of items in each category and the annual dollar value for each category for part b. The principal table are in the picture below