Answer:
Requirements are computed below.
Step-by-step explanation:
For ABC analysis:
Step1: Calculate the total value of each item.
SKU Number of Items Value ($/item) Value of the product ($)
A 220 67 14740
B 225 3 675
C 245 21 5145
D 145 7 1015
E 230 26 5980
F 240 83 19920
Step2: Reorganize the table on the basis of total value in descending order, & calculate % share of total value of investment and cumulative % share of total value of investment.
SKU Number of Items Value ($/item) Value of the product ($) % of Total value Cumulative % of total value Segment
SKU Number of Items Value ($/item) Value of the product ($) % of Total value Cumulative % of total value Segment
F 240 83 19920 41.96 41.96 A
A 220 67 14740 31.05 73.01 A
E 230 26 5980 12.60 85.60 B
C 245 21 5145 10.84 96.44 B
D 145 7 1015 2.14 98.58 C
B 225 3 675 1.42 100.00 C
----------
% of total number of items in segment B = (230+245)/1305 = 36.4%
% of total value of inventory in segment B = (12.6 + 10.4)/100 = 23.43%
% of the total weight of inventory in segment B = (9660+14700)/67795 = 35.93%
SKU Number of Items Value ($/item) Weight (lb/item) Total weight
A 220 67 52 11440
B 225 3 59 13275
C 245 21 60 14700
D 145 7 48 6960
E 230 26 42 9660
F 240 83 49 11760
