Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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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
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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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