Problem:
Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below.
| Item Code # |
Average Inventory
(units) |
Value ($/unit) |
|
|
|
| 1289 |
400 |
$3.75 |
| 2347 |
300 |
$4.00 |
| 2349 |
120 |
$2.50 |
| 2363 |
75 |
$1.50 |
| 2394 |
60 |
$1.75 |
| 2395 |
30 |
$2.00 |
| 6782 |
20 |
$1.15 |
| 7844 |
12 |
$2.05 |
| 8210 |
8 |
$1.80 |
| 8310 |
7 |
$2.00 |
| 9111 |
6 |
$3.00 |
How would the plant classify these items according to an ABC classification system?