Ch 12

item
#101
#102
#103
#104
#105
#201
#202
#203
#204
#205

#20
ann. Demand

Targets
A
B
C

approx % of items approx % dollars

10%-30%
60%-80%
10%-40%
25%-35%
50%-60%
5%-15%

500
1500
5000
250
1500
10000
1000
1500
500
100

unit price ann. dollar

0.5
250
0.2
300
1
5000
4.5
1125
1.2
1800
0.75
7500
1.35
1350
0.2
300
0.8
400
2.5
250

Ch 12
item
#201
#103
#105
#202
#104
#204
#102
#203
#101
#205

#20
ann. Demand unit price ann. $
% of total cumu. %
10000
0.75 $7,500.00
41.04%
41.04%
5000
1 $5,000.00
27.36%
68.40%
1500
1.2 $1,800.00
9.85%
78.25%
1000
1.35 $1,350.00
7.39%
85.64%
250
4.5 $1,125.00
6.16%
91.79%
500
0.8
$400.00
2.19%
93.98%
1500
0.2
$300.00
1.64%
95.62%
1500
0.2
$300.00
1.64%
97.26%
500
0.5
$250.00
1.37%
98.63%
100
2.5
$250.00
1.37% 100.00%
$18,275.00

Targets
A
B
C

% of items
10-20%
30%
50-60%

dollar cost
60-80%
25-35%
5-15%

class
A
A
B
B
B
C
C
C
C
C

Note that the B items make up about 23%,

so the fit is not perfect.