(4 points) Do an ABC analysis and identify the A , B and C items using the general guidelines given in the text. (Fill in the missing numbers and briefly describe your reasoning for classification into A,B and C. Item description Price per unit # of units consumed per year Total dollar value Identify the item as A , B or C Bolts 0.08 200000 16000 Nuts 0.05 200000 10000 Washers 0.002 400000 800 Frame 20.00 10000 200000 Handlebar 22.00 10000 220000 Seat 5.00 10000 50000 Bell 3.00 6000 18000 Ringer 2.00 4000 Brakes 3.00 10000 Chain mechanism 5 10000 Reasons for why an item is classified as A, B or C:

(4 points) Do an ABC analysis and identify the A , B and C items using the general guidelines given in the text. (Fill in the missing numbers and briefly describe your reasoning for classification into A,B and C.

Item description

Price per unit

# of units consumed per year

Total dollar value

Identify the item as A , B or C

Bolts

0.08

200000

16000

Nuts

0.05

200000

10000

Washers

0.002

400000

800

Frame

20.00

10000

200000

Handlebar

22.00

10000

220000

Seat

5.00

10000

50000

Bell

3.00

6000

18000

Ringer

2.00

4000

Brakes

3.00

10000

Chain mechanism

5

10000

Reasons for why an item is classified as A, B or C:

 

Solution

ABC analysis helps to sort out and prioristise

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