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:

Schwann Cells

A type of glial cell that wraps around nerve fibers in the peripheral nervous system, forming the myelin sheath that aids in the fast conduction of electrical signals.

Afferent Neurons

Nerve cells that carry sensory information from the body's organs and tissues toward the central nervous system.

Reticular Formation

A network of nerve pathways in the brainstem involved in consciousness, the sleep-wake cycle, and filtering sensory information before it reaches higher brain centers.

Hippocampus

A critical region of the brain involved in the formation of new memories and is associated with learning and emotions.