Question

In: Operations Management

Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 7,400 items in its inventory and has hired Joan Blasco-Paul to manage its inventory.

Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 7,400 items in its inventory and has hired Joan Blasco-Paul to manage its inventory. Joan has determined that 12% of the items in inventory are A items, 32% are B items, and 56% are C items. She would like to set up a system in which all A items are counted monthly (every 20 working days), all B items are counted quarterly (every 61 working days), and all C items are counted semiannually (every 121 working days). How many items need to be counted each day?

Solutions

Expert Solution

items are 0.12 * 7400 = 888

B items are 0.32 * 7400 = 2,368

C Items are 0.56 * 7400 = 41,440

Units to be counted everyday are 888/20 + 2,368/61 + 41,440/121 = 44.4 + 38.82 + 342.48 = 425.7


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