The maintenance department for a small manufacturing firm has responsibility for maintaining an inventory of spare parts

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The Maintenance Department For A Small Manufacturing Firm Has Responsibility For Maintaining An Inventory Of Spare Parts 1 (48.48 KiB) Viewed 75 times

The maintenance department for a small manufacturing firm has responsibility for maintaining an inventory of spare parts for the machinery it services. The department manager wants to classify the inventory parts according to the ABC system through its quantity to determine which stocks of parts should most closely be monitored. The parts inventory, unit cost and annual usage is shown in Table 3. Let assume that the criteria for class A is less than 20% of total units, class B in between 20 to 30% and class C is more than 30%. Part Unit cost (RM) Annual usage (unit) A 45 220 B 55 C 35 D 22 48 71 E F G H I J 77 40 60 25 500 550 800 450 205 600 655 355 955 Table 3