1.

Show the inventory stratification output from the procedures performed

relating to the final bullet above.

2. Using the output included in Q#1, approximately how many dollars of

inventory (TOTALCOST) represent approaching a 1year supply of the item
or longer, if one assumes this year’s sales are typical?

Summing cost with turnover less than 1, the total cost under this condition is
approximately $111,694.

3. With Inventory_Positive QTY open, use Criteria Download Criteria(high

right side of screen: Properties --> Database --> Criteria) to calculate how
many dollars of inventory (TOTALCOST) are in items with zero sales this
past year (that is, a turnover of zero). The amount is closest to:

C.

4. Make certain that you have Inventory_Positive QTY open. Sort the file on
Turnover from lowest to highest (click on top of turnover column). Notice in
examining the accounts with a turnover of less than 1.00 that none of these
are what the client described as OBSOLETE accounts. Sort the accounts
again on Obsolete and visually inspect the turnovers. One would expect
the OBSOLETE items to have low turnover rates. Is that what you found?
Explain.

No, according to my observation, OBSOLETE items tend to have higher turnover rates,
which contradicts the assumption that items with lower turnover rates are prone to
become obsolete. One should inquire of the managements about this phenomenon.
 5. Which of the following seems most accurate concerning the company’s
inventory based on the various turnover results?

D.