Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs i
ID: 368595 • Letter: O
Question
Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their supplier (Class A items), those that will be controlled using a continuous review system (B items), and those that will be held in a two bin system (C items) The following table shows the annual dollar usage for a sample of eight SKUs. Fill in the blanks for annual dollar usage below. (Enter your responses rounded to the nearest whole number.) Annual Dollar Usage SKU Unit Value Demand (units) $0.02 $4.50 $0.25 $0.55 $1.00 $0.90 $1.50 $0.03 1,200 800 65,000 100 40,000 350 150 115,000 4 6 8Explanation / Answer
Annual Dollar Usage will be defined as :
Annual Dollar Usage = Unit value x Demand ( units)
SKU
Unit Value ($)
Demand ( Unit)
Annual Dollar usage ( $)
1
0.02
1200
24
2
4.50
800
3600
3
0.25
65000
16250
4
0.55
100
55
5
1.00
40000
40000
6
0.90
350
315
7
1.50
150
225
8
0.03
115000
3450
SKU
Unit Value ($)
Demand ( Unit)
Annual Dollar usage ( $)
1
0.02
1200
24
2
4.50
800
3600
3
0.25
65000
16250
4
0.55
100
55
5
1.00
40000
40000
6
0.90
350
315
7
1.50
150
225
8
0.03
115000
3450
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