# Hw7 sol - HOMEWORK_7 SOLUTIONS Chapter 12 Note Qualitative...

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HOMEWORK_7 SOLUTIONS Chapter 12 Note: Qualitative parts will be graded based on the context of the answers provided, if your approach is a rational one then a full-grade will be given for those questions. 1. a. Item Usage Unit Cost Usage x Unit Cost Category 4021 90 \$1,400 \$126,000 A 9402 300 12 3,600 C 4066 30 700 21,000 B 6500 150 20 3,000 C 9280 10 1,020 10,200 C 4050 80 140 1,120 C 6850 2,000 10 20,000 B 3010 400 20 8,000 C 4400 5,000 5 25,000 B In descending order: Item Usage x Cost Category 4021 \$126,000 A 4400 25,000 B 4066 21,000 B 6850 20,000 B 9280 10,200 C 3010 8,000 C 9402 3,600 C 6500 3,000 C 4050 1,120 C 217,920 1. b. Category Percent of Items Percent of Total Cost A 11.1% 57.8% B 33.3% 30.2% C 55.6% 11.9%

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3. D = 4,860 bags/yr. S = \$10 H = \$75 a. bags 36 75 10 ) 860 , 4 ( 2 H DS 2 Q b. Q/2 = 36/2 = 18 bags c. orders 135 orders / bags 36 bags 860 , 4 Q D d. S Q D H 2 / Q TC 700 , 2 \$ 350 , 1 350 , 1 ) 10 ( 36 860 , 4 ) 75 ( 2 36 e. Using S = \$5, Q = 757 . 37 75 ) 11 )( 860 , 4 ( 2 79 . 831 , 2
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Hw7 sol - HOMEWORK_7 SOLUTIONS Chapter 12 Note Qualitative...

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