Question

In: Operations Management

Which of the following 4 items is most likely to be classified as an A item...

Which of the following 4 items is most likely to be classified as an A item in ABC Analysis?

annual usage unit cost
widget 300 75
thingamajig 150 5
whatchamacallit 400 4
dohickey 82 60
A.

whatchamacallit

B.

thingamajig

C.

dohickey

D.

widget

Solutions

Expert Solution

Here, right option is D.widget.

As, it annual consumtion value is highest.

Annual consumtion value of widget=(300*75)=22500

Annual consumtion value of thingamajig=(150*5)=750

Annual consumtion value of whatchamacallit=(400*4)=1600

Annual consumtion value of dohickey=(82*60)=4920


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