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Inventoreconomic Order Quantity Model: Results - Sorted by Dollar Volume
Inventoreconomic Order Quantity Model: Results - Sorted by Dollar Volume
)
A.) ABC Analysis
Data Results - sorted by dollar volume
Dollar Dollar
Volume Dollar Volume
Rank Item Unit Cost Volume volume Rank
3 A2 50 3000 ### 1
6 B8 12 4000 ### 2
4 C7 45 1500 ### 3
5 D1 10 6000 ### 4
7 E9 20 1000 ### 5
2 F3 500 500 ### 6
1 G2 1500 300 ### 7
10 H2 20 600 ### 8
8 I5 10 1750 ### 9
9 J8 5 2500 ### 10
B.) This ABC analysis provides Boreki Enterprises with the products that are their top revenue producers.
It shows them what products they should be valuing most on a priority list and which classes should have different
inventory policies associated with them.
C.) A2 can be added to the A classification because over 75% of the dollar volume is produced by 3 items.
Data 200
Demand ra 2500
Setup/orde 18.75 150
Holding co 1.5 (fixed amount)
Cost ($)
Results 50
Optimal Or 250
Maximum I 250 0
Average I 125 50 .67 .33 100 .67 .33 150 .67 .33 200 .67 .33 250 .67 .3
Number of 10 6 6 83 6 3
11 13
6 3
16 18
6 3
2 1 23
6 3
2 6 28
Order Quantity (Q)
Cum
Percent of Percent of
Dollar Dollar
Item Volume Unit Cost Dollar Volume Volume Volume Category
G2 1500 300 $ 450,000.00 41.38% 41.38% A
F3 500 500 $ 250,000.00 22.99% 64.37% A
A2 50 3000 $ 150,000.00 13.79% 78.16% B
C7 45 1500 $ 67,500.00 06.21% 84.37% B
D1 10 6000 $ 60,000.00 05.52% 89.89% B
B8 12 4000 $ 48,000.00 04.41% 94.30% C
E9 20 1000 $ 20,000.00 01.84% 96.14% C
I5 10 1750 $ 17,500.00 01.61% 97.75% C
J8 5 2500 $ 12,500.00 01.15% 98.90% C
H2 20 600 $ 12,000.00 01.10% 100.00% C
Total $ 1,087,500.00
p revenue producers.
which classes should have different
produced by 3 items.
3 0 7 3 0 7 3 0 7 3 0 7 3 0 7 3 0 7 3
.3 15 6.6 3.3 20 6.6 3.3 25 6.6 3.3 30 6.6 3.3 35 6.6 3.3 40 6.6 3.3
16 18 2 1 23 2 6 28 31 3 3 36 3 8 4 1 43
Order Quantity (Q)