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Implementation of ABC analysis
The following steps are included in implementing the ABC analysis:
1. Categorize the items of inventories, establishing the expected use in units and price per unit for each item.
2. Establish the total value of each item by multiplying the predictable units by its unit price.
3. Rank the item in accordance with the net value, providing first rank to the item with highest total value and so forth.
4. Calculate the ratios (percentage) of number of units of each item to net units of all items and the ratio of net value of each item net value of all items.
Explain Support activitiesand production process activity Support activities are for example schedule production set up machine purchase materials inspect item customer orde
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Viti Ltd, located in southern Viti Levu, manufactures a variety of industrial valves and pipe fittings that are sold to customers in the eastern states. Currently, the company is o
Consider the following quality data for three different manufacturers of automobile weather-strips: Weather-strip Bulb Dimension Specification y=20 +or- 4mm
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Risk : Risk includes circumstances or events that may or may not take place though whose probability of occurrence can be predicted from the past records. In this atmosphere, t
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