L. Houts Plastics is a large manufacturer of? injection-moldedplastics in North Carolina. An investigation of the? company'smanufacturing facility in Charlotte yields the informationpresented in the table below. How would the plant classify theseitems according to an ABC classification? system?
?(Round dollar volume to the nearest whole number and percentageof dollar volume to two decimal? places.)
Item Code Avg. Inventory (units) Value($/unit) DollarVolume % of dollarvolume
1289 400 3.50 _____ ______
2347 300 4.00 1,200 36.97
2349 120 2.50 300 9.24
2363 65 1.50 ____ ____
2394 60 1.75 105 3.23
2395 25 1.75 ____ _____
6782 20 1.15 23 0.71
7844 12 2.05 25 0.76
8210 10 2.00 ___ ___
8310 7 2.00 14 0.43
9111 6 3.00 18 0.55
___________
3,246
What is the highest dollar volume?percentage?
The concept of ABC category analysis is basedon
A. statistical? sampling, i.e., sampling a few items to getcontrol of the whole inventory.
B.controlling the maximum number of inventory items withmoderate effort.
C.controlling the maximum number of inventory items with minimaleffort.
D.controlling the maximum amount of money with minimaleffort.
