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DAT, Inc., produces digital audiotapes to be used in the consumer audio division. DAT lacks sufficient personnel in its inventory supply section to...

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1. DAT, Inc., produces digital audiotapes to be used in the consumer audio division. DAT lacks sufficient personnel in its inventory supply section to closely control each item stocked, so it has asked you to determine an ABC classification. Here is a sample from the inventory records: ITEM AVERAGE MONTHLY DEMAND PRICE PER UNIT 1 600 $ 4.00 2 3,100 10.00 3 300 5.00 4 400 10.00 5 6,400 16.00 6 2,900 2.00 7 1,000 4.00 8 4,800 23.00 9 1,500 20.00 10 1,600 19.00 Develop an ABC classification for these 10 items. Item Monthly Usage ($) Class 1 2 3 4 5 6 7 8 9 10 (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select)
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2. Ray's Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 1,650 units. His cost to carry one unit is $80 per year per unit, and he has estimated that each order costs $40 to place. Using the EOQ model, how many should Ray order each time? (Round your answer to the nearest whole number.) Optimal order quantity units 3. Demand for an item is 3,100 units per year. Each order placed costs $15; the annual cost to carry items in inventory is $6 each. In what quantities should the item be ordered? (Round your answer to the nearest whole number.) Optimal order quantity units 4. Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 1,700 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $8 per unit of average inventory. Every time an order is placed for more item X, it costs $26. a. Whenever item X is ordered, what should the order size be? (Round your answer to the nearest whole number.) Order size b. What is the annual cost for ordering item X? (Round your answer to 2 decimal places.) Ordering cost $
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