Question

L. Houts Plastics is a large manufacturer of​ injection-molded plastics in North Carolina. An investigation of the​ company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification​ system?

​(Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal​ places.)

Item Code   Avg. Inventory (units)   Value ($/unit)      Dollar Volume        % of dollar volume
1289      400                                 3.50                  _____                         ______
2347 300                                4.00                   1,200                           36.97
2349      120    2.50                     300                             9.24
2363   65   1.50                    ____                            ____
2394                   60    1.75                    105                               3.23
2395   25   1.75                    ____                            _____
6782                   20   1.15                      23                                0.71
7844   12    2.05                      25                                0.76
8210   10    2.00                      ___                                ___
8310      7      2.00                       14                                 0.43
9111                    6   3.00                      18                                 0.55

                                                                                    ___________

                                                                                            3,246

What is the highest dollar volume​ percentage?

The concept of ABC category analysis is based on

A. statistical​ sampling, i.e., sampling a few items to get control of the whole inventory.

B.controlling the maximum number of inventory items with moderate effort.

C.controlling the maximum number of inventory items with minimal effort.

D.controlling the maximum amount of money with minimal effort.

Answer 1

Given that

we have to statistical​ sampling, i.e., sampling a few items to get control of the whole inventory.