The Owner of a Garden Supply Store Was Wondering If

question 89

Essay

The owner of a garden supply store was wondering if they could manage their inventory better. She decided to develop an ABC classification system to help manage the inventory. The company's inventory consists of the following items:
$$\begin{array} { c c c } \text { Garden Tool } & \text { Cost } & \text { Quarterly Demand units) } \\\hline \text { Shovel } & 5500 & 1,000 \\ \text { Edger } & \$ 25.00 & 6 \\ \text { Weeder } & \$ 6.00 & 400 \\\text { Hose } & \$ 20.00 & 800 \\ \text { Cutters } & \$ 4.00 & 100 \\ \text { Sprinkler } & \$ 7.00 & 800 \\ \text { Hedge Trimmer } & \$ 5.00 & 5,000 \\ \text { Spreader } & \$ 15.00 & 6 \\ \text { Sprayer } & \$ 12.00 & 20 \\ \text { Clippers } & \$ 8.00 & 15 \\\end{array}$$
a. Compute the total dollar value of each of the ten inventory items. What is the total value of all the inventory items?
b. Which items should be declared "A" items? What percentage of total inventory value does your "A" group represent? What percentage of the total number of inventory items does your "A" group represent?
c. Which items should be declared "B" items? What percentage of total inventory value does your "B" group represent? What percentage of the total number of inventory items does your "B" group represent?
d. Which items should be declared "C" items? What percentage of total inventory value does your "C" group represent? What percentage of the total number of inventory items does your "C" group represent?

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Definitions:

Ethyl Acetoacetate

An organic compound used as a reagent in the synthesis of various compounds, characterized by the presence of both ester and keto functional groups.

Sodium Ethoxide

A strongly basic compound formed from the reaction of ethanol and sodium, used as a nucleophile in organic synthesis.

Dilute Acid

An acid solution that has a low concentration of acid in a large amount of solvent, typically water.

Malonic Ester

A compound characterized by having two ester groups attached to the same carbon, which is notable for its use in malonic ester synthesis, allowing the construction of carboxylic acids.