3. (20) Jean-Marie Bourjolly\'s restaurant has the following inventory items tha
ID: 427755 • Letter: 3
Question
3. (20) Jean-Marie Bourjolly's restaurant has the following inventory items that it orders on a weekly basis. Fill in the blanks in the annual dollar volume(not weekly) is requested. The restaurant is open a year. (Round dollar volume to the neare dollar volume to two decimalplaces.) following table. Remember that 52 weeks st whole number and percentage of ld Itemm # Order per week Annual Dollar Volume % of Dollar Volume Cost/Case 1 Rib eye steak 3 2 Lobster tail 245 23 38,220 14,352 312 1,248 9.16 3.44 0.07 0.30 3 Pasta 4 Salt 5 Napkins 6 Tomato sauce 11 7 French fries 8 Pepper 9 Garlic powder 10 Trash can liners 3 11 Table cloths 12 Fish Filets 13 Prime rib roasts 6 12 23 0.11 0.41 0.45 1.99 468 1716 1872 8320 74,360 3 12 32 143 166 26 35 75 5 17.83 12.42 51,792 14 Oil 2 43,680 10.47 54,60013.09 0.30 1.92 14,5603.49 0.10 15 Lettuce (case) 24 16 Chickens 17 Order pads 18 Eggs (case)7 19 Bacon 1,248 8,008 2 20 Sugar 4 41 Enter your response as a whole number). a) What is the highest annual dollar volume for any one item? b) For the following three questions consider only Rib eye steak, French fries and Oil items for relative classification: Given the percentages of dollar volume 1. The class of Rib eye steak is 2. The class of French fries is 3. The class of Oil is c) What is the total annual dollar volume for all items?Explanation / Answer
Calculation:
a. The highest annual dollar volume for any one item is Fish Filets with annual dollar volume of $74,360
b. The ABC classification for inventory management is based on annual/monthly issue value of the inventory items in term of dollar where items are grouped into three categories as per their importance.
ABC classification:
Top 65-80% items in term of value considered high value in value and classified as A
Next 15-25% items in term of value considered intermediary value and classified as B
Remaining 5 - 10 % items in term of value considered low value and classified as C
Therefore,
c. The total annual dollar volume of all items is $417,092
Id Item # Order per week Cost/Case ($) Annual dollar volume (Order per week * 52 * Cost/case) % of Dollar volume (Annual dollar volume/ Total)*100 1 Rib Eye steak 3 125 $19,500 4.68% 2 Lobster tail 3 245 $38,220 9.16% 3 Pasta 12 23 $14,352 3.44% 4 Salt 2 3 $312 0.07% 5 Napkins 2 12 $1,248 0.30% 6 Tomato sauce 11 23 $13,156 3.15% 7 French fries 32 40 $66,560 15.96% 8 Pepper 3 3 $468 0.11% 9 Garlic powder 3 11 $1,716 0.41% 10 Tans Can liners 3 12 $1,872 0.45% 11 Table cloths 5 32 $8,320 1.99% 12 Fish Filets 10 143 $74,360 17.83% 13 Prime rib roasts 6 166 $51,792 12.42% 14 Oil 2 26 $2,704 0.65% 15 Lettuce (case) 24 35 $43,680 10.47% 16 Chickens 14 75 $54,600 13.09% 17 Order pads 2 12 $1,248 0.30% 18 Eggs (case) 7 22 $8,008 1.92% 19 Bacon 5 56 $14,560 3.49% 20 Sugar 2 4 $416 0.10% Total annual dollar volume of all items (Sum of all annual dollar volumes) $417,092Related Questions
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