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

keosha answered 1 year ago

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