Calculate the inventory weeks for each item

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Reference no: EM133960840

Questions

1. Prepare a spreadsheet-based abc analysis of usage value. classify as follows:

a. Items: top 20 per cent of usage value

b. Items: next 30 per cent of usage value

c. Items: remaining 50 per cent of usage value

2. Calculate the inventory weeks for each item, for each classification, and for all the items in total. Does this suggest that the Operations Manager's estimate of inventory weeks is correct? If so, what is your estimate of the overall inventory at the end of the base year, and how much might that have increased during the year?

3. Based on the sample, analyse the underlying causes of the availability problem described in the text.

Reference no: EM133960840

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