Answered Essay: Your company has compiled the following data on the small set of products that comprise the specialty

Your company has compiled the following data on the small set of products that comprise the specialty repair parts division. Perform ABC analysis on the data. Which products do you suggest the firm keep the tightest control over? R11 and U44 Rl1 and S22 U44 and V55 U44 and S22

Expert Answer

The ABC analysis is done in the following table.The answer is Option A, R11 and U 44

SKU ANNUAL DEMAND UNIT COST ANNUAL USAGE VALUE % CATEGORY
R11 250 250 62500 62.22 A
U44 150 150 22500 22.40 A
V55 100 75 7500 7.47
S22 75 90 6750 6.72
T33 20 60 1200 1.19
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