Answer to Question #283223 in Management for Abi

Question

eek 11 - LAQ's

Instructions

The following data is pertaining to a workshop which is constantly maintaining 10 products through out the year. Cost and demand requirement is given in following table. Classify the items by using suitable inventory controlling technique.

Component name

A1

A2

A3

A4

A5

A6

A7

A8

A9

A10

Cost / unit

70

150

2500

500

300

40

1200

600

200

800

Annual requirements

500

200

150

75

600

900

300

400

750

100

Answer 1

A1- bulk shipment

A2- consignment

A3- just-in-time

A4- just-in-time

A5- ABC analysis

A6- bulk shipment

A7- economic order quantity

A8- minimum order quantity

A9- bulk shipment

A10- just-in-time