Tip Top Tailoring Company Has Compiled the Following Data on the Small

question 56

Essay

Tip Top Tailoring Company has compiled the following data on the small set of products that comprise its specialty clothing division. Perform an ABC analysis on the data. Which products do you suggest the firm keep the tightest control over? Explain.
$$\begin{array} { | c | c | c | } \hline \text { SKU } & \text { Annual Demand } & \text { Unit Cost } \\\hline \text { A11 } & 1,200 & \$ 350 \\\hline \text { B22 } & 100 & \$ 80 \\\hline \text { C33 } & 4,500 & \$ 50 \\\hline \text { D44 } & 400 & \$ 160 \\\hline \text { E55 } & 35 & \$ 75 \\\hline \text { F66 } & 250 & \$ 70 \\\hline \text { G77 } & 1,000 & \$ 125 \\\hline \text { H88 } & 500 & \$ 25 \\\hline \text { I99 } & 200 & \$ 60 \\\hline\end{array}$$

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Definitions:

Disagreements

Occurrences of differing opinions or conflicts between individuals or groups, often leading to debates or disputes.

Information Technology

This is the use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

Virtual

Pertains to something that is not physically existing but made by software to appear to do so, often used in the context of virtual reality or virtual meetings.

Empowerment

Giving employees authority and responsibility to make decisions about their work.