Question

In: Operations Management

Chemtronics., a manufacturer of electronics equipment, has about 28,000 items in its inventory and has hired Lisa Ling to manage its inventory.

Chemtronics., a manufacturer of electronics equipment, has about 28,000 items in its inventory and has hired Lisa Ling to manage its inventory. Lisa has determined that 10% of the items in inventory are A items, 30% are B items, and 60% are C items. She would like to set up a system in which all A items are counted every 40 working days, all B items are counted every 80 working days, and all C items are counted every 120 working days. How many items need to be counted each day?

Solutions

Expert Solution

Total items are 28000 (Given)

10 % items are A items

Total A items = 0.1 * 28000 = 2800

30% items are B items

Total B items = 0.3 * 28000 = 8400

60 % items are C items

Total C items = 16800

A items should be counted every 40 days

Thus total A items counted each day = = = 70

Similarly ,Total B items counted each day = = 105

Total C items counted each day = = 140

Thus total items counted daily = 70 + 105 + 140 = 315

Thus 315 items need to be counted daily


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