Oakwood Hospital is considering using ABC analysis to classify laboratory 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 items). The following table shows the annual dollar usage for a sample of eight SKUs. Fill in the blanks for annual dollar usage below. (Enter your responses rounded to the nearest whole number.) SKUUnit ValueDemand (units)Annual Dollar Usage1$0.4590$nothing2$0.2555,000$nothing3$1.1035,000$nothing4$0.031,100$nothing5$0.80300$nothing6$1.40150$nothing7$0.02125,000$nothing8$4.20800$nothingRank the SKUs in descending order on the basis of their annual dollar usage and fill in the table with the ranked SKU's percentage of dollar usage. (Enter your responses rounded to two decimal places.)RankSKU CodePercent of Dollar Usage1▼ 83152746nothing 2▼ 17654382nothing%3▼ 54261783nothing%4▼ 63852471nothing%5▼ 26345781nothing%6▼ 47231658nothing%7▼ 48326517nothing%8▼ 23186745nothing%Based on the percentages of dollar usage, the class of SKU code4is C or A or B Based on the percentages of dollar usage, the class of SKU code1is C or A or B.Based on the percentages of dollar usage, the class of SKU code6is C or A or B . Enter your answer in each of the answer boxes.

The ABC analysis is a very popular technique use to segregate the importance of the SKU's on the…

Answered: Oakwood Hospital is considering using…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

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Oakwood Hospital is considering using ABC analysis to classify laboratory 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 items).

The following table shows the annual dollar usage for a sample of eight SKUs. Fill in the blanks for annual dollar usage below. (Enter your responses rounded to the nearest whole number.)

SKU	Unit Value	Demand (units)	Annual Dollar Usage
1	$0.45	90	$nothing
2	$0.25	55,000	$nothing
3	$1.10	35,000	$nothing
4	$0.03	1,100	$nothing
5	$0.80	300	$nothing
6	$1.40	150	$nothing
7	$0.02	125,000	$nothing
8	$4.20	800	$nothing

Rank the SKUs in descending order on the basis of their annual dollar usage and fill in the table with the ranked SKU's percentage of dollar usage. (Enter your responses rounded to two decimal places.)

Rank	SKU Code	Percent of Dollar Usage
1	▼ 8 3 1 5 2 7 4 6	nothing
2	▼ 1 7 6 5 4 3 8 2	nothing%
3	▼ 5 4 2 6 1 7 8 3	nothing%
4	▼ 6 3 8 5 2 4 7 1	nothing%
5	▼ 2 6 3 4 5 7 8 1	nothing%
6	▼ 4 7 2 3 1 6 5 8	nothing%
7	▼ 4 8 3 2 6 5 1 7	nothing%
8	▼ 2 3 1 8 6 7 4 5	nothing%

Based on the percentages of dollar usage, the class of SKU code

is C or A or B

Based on the percentages of dollar usage, the class of SKU code

is C or A or B

Based on the percentages of dollar usage, the class of SKU code

is C or A or B

Enter your answer in each of the answer boxes.

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