Southern Markets Inc. is considering the use of ABC analysis to focus on the most critical SKUs in its inventory. Currently, there are approximately 40,000 different SKUs with a total dollar usage of $14,000,000 per year. . What would you expect to be the number of SKUS and the total annual dollar usage for A items, B items and C items Southern Markets, Inc.? Number of A items = (Enter your response rounded to the nearest whole number.)

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...
icon
Related questions
Question

Please do not give solution in image format thanku

 

Southern Markets Inc. is considering the use of ABC analysis to focus on the most critical SKUs in its inventory. Currently, there are approximately 40,000 different SKUs with a total dollar usage of $14,000,000 per year.
a. What would you expect to be the number of SKUs and the total annual dollar usage for A items, B items and C items at Southern Markets, Inc.?
Number of A items= (Enter your response rounded to the nearest whole number.)
Transcribed Image Text:Southern Markets Inc. is considering the use of ABC analysis to focus on the most critical SKUs in its inventory. Currently, there are approximately 40,000 different SKUs with a total dollar usage of $14,000,000 per year. a. What would you expect to be the number of SKUs and the total annual dollar usage for A items, B items and C items at Southern Markets, Inc.? Number of A items= (Enter your response rounded to the nearest whole number.)
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Purchasing and Supply Chain Management
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