Question

In: Operations Management

4,400 items in inventory, 400 A items, 1,500 B items, 2,500 C items. Policy is to...

4,400 items in inventory, 400 A items, 1,500 B items, 2,500 C items. Policy is to count A items every month (30 working days), B items every quarter (90 days), and C items every six months (180 days).

Item Class

Quantity

Cycle Counting Policy

Number of Items Counted per Day

A

400

Each month

B

1,500

Each quarter

C

2,500

Every 6 months

Total Items to count per day___________

Solutions

Expert Solution

Total items in inventory = 4400

Number of A items in inventory = 400

Number of B items in inventory = 1500

Number of C items in inventory = 2500

All A items are counted every 30 working days. So number of A items counted each day = 400/30 = 13.33 items

All B items are counted every 90 working days. So number of B items counted each day = 1500/90 = 16.67 items

All C items are counted every 180 working days. So number of C items counted each day = 2500/180 = 13.89 items

Therefore, total number of items need to be counted each day = 13.33 + 16.67 + 13.89 = 43.89 or rounded up to 44 items

(Note - All the intermediate calculations are rounded to two decimal places and the final answer to the nearest whole number)


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