Question

In: Operations Management

Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 7400 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 7400 items in its inventory and has hired Joan Blasco-Paul to manage its inventory. Joan has determined that 11% of the items in inventory are A items, 30% are B items, and 59% are C items. She would like to set up a system in which all A items are counted monthly (every 21 working days), all B items are counted quarterly (every 60 working days), and all C items are counted semiannually (every 118 working days).

How many items need to be counted each day? The total number of items that need to be counted each day is (BLANK)  items (round your response to the nearest whole number).

Solutions

Expert Solution

Inventory on hand = 7400 units

Item A = 11% of Inventory

Item A = 7400*11% = 814 units

Similarly,

Item B = 7400*30% = 2220 unit

Item C = 7400*59% = 4366 unit

Items to be counted each day = (814/21) + (2220/60) + (4366/118)

Items to be counted each day = 112.76

Items to be counted each day = 113 units


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