The manager of an automobile repair shop hopes to achieve a better allocation of inventory control efforts by adopting an ABC approach to inventory control. Using the following monthly usage and classify the items in A, B, and C categories according to dollar usage:
Item Usage Unit Cost
(a) Calculate monthly dollar value in each raw.
(b) Use the concept of ABC classification and array from highest to lowest.
(c) Array the items in decending order.
(d) Briefly explain the abovementioned scenario.
(e) How could the manager use the information formed in the above Table.
(f) After reviewing your classification scheme, suppose that the manager decides to place 4400 into the A category. What may be some possible explanations for this decision?