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

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 2 years ago

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