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Your company has compiled the following data on the small set of products that comprise the specialty repair parts division. Perform ABC analysis on the data. Which products do you suggest the firm keep the tightest control over? R11 and U44 Rl1 and S22 U44 and V55 U44 and S22
Expert Answer
The ABC analysis is done in the following table.The answer is Option A, R11 and U 44
| SKU | ANNUAL DEMAND | UNIT COST | ANNUAL USAGE VALUE | % | CATEGORY |
| R11 | 250 | 250 | 62500 | 62.22 | A |
| U44 | 150 | 150 | 22500 | 22.40 | A |
| V55 | 100 | 75 | 7500 | 7.47 | |
| S22 | 75 | 90 | 6750 | 6.72 | |
| T33 | 20 | 60 | 1200 | 1.19 | |
| 100450 |
