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Using the case data, propose a breakdown for an ABC analysis, and clearly outline how each category of items might be managed by the hospital. I completed the anaylsis using the excel tool. But I don't really understand how to classify them into the A, B, & C categories

Using the case data, propose a breakdown for an ABC analysis, and clearly outline how each category of items might be managed by the hospital. I completed the anaylsis using the excel tool. But I don't really understand how to classify them into the A, B, & C categories

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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  1. Using the case data, propose a breakdown for an ABC analysis, and clearly outline how each category of items might be managed by the hospital. I completed the anaylsis using the excel tool. But I don't really understand how to classify them into the A, B, & C categories. 
SKU 3 8 1 5 6 7 4 9 10 12 2 11 18 15 16 13 14 19 20 17 Total Annual Usage 117 27 212 60 48 33 77 19 18 7 210 12 2 3 3 4 4 1 1 3 Average Unit Cost $50.00 $5,850.00 18.41% $210.00 $5,670.00 17.84% critical $24.00 $5,088.00 16.01% $58.00 $3,480.00 10.95% $55.00 $2,640.00 8.31% $73.00 $2,409.00 7.58% $28.00 $2,156.00 6.78% $74.00 $1,406.00 4.42% $45.00 $810.00 2.55% critical $65.00 $455.00 1.43% $2.00 $420.00 1.32% $33.00 $396.00 1.25% $134.00 $268.00 0.84% critical $72.00 $216.00 0.68% $61.00 $183.00 0.58% $41.00 $164.00 0.52% $20.00 $80.00 0.25% $34.00 $34.00 0.11% $29.00 $29.00 0.09% $8.00 $24.00 0.08% $31,778.00
Transcribed Image Text:SKU 3 8 1 5 6 7 4 9 10 12 2 11 18 15 16 13 14 19 20 17 Total Annual Usage 117 27 212 60 48 33 77 19 18 7 210 12 2 3 3 4 4 1 1 3 Average Unit Cost $50.00 $5,850.00 18.41% $210.00 $5,670.00 17.84% critical $24.00 $5,088.00 16.01% $58.00 $3,480.00 10.95% $55.00 $2,640.00 8.31% $73.00 $2,409.00 7.58% $28.00 $2,156.00 6.78% $74.00 $1,406.00 4.42% $45.00 $810.00 2.55% critical $65.00 $455.00 1.43% $2.00 $420.00 1.32% $33.00 $396.00 1.25% $134.00 $268.00 0.84% critical $72.00 $216.00 0.68% $61.00 $183.00 0.58% $41.00 $164.00 0.52% $20.00 $80.00 0.25% $34.00 $34.00 0.11% $29.00 $29.00 0.09% $8.00 $24.00 0.08% $31,778.00
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