4. Cylce Counting (4 marks) Leemin Enterprises carries 9,000 items of outdoor ga

Question

4. Cylce Counting (4 marks)

Leemin Enterprises carries 9,000 items of outdoor garden décor. It’s owner, Peter Ng, uses an ABC classification system. 7% of the items are classified as A. 33% of the items are classified as B. The remaining items are classified as C. Peter wants his operations staff to count the A items monthly, the B items quarterly, and the C items semi-annually. Leemin uses 20 days per month for calculations.

How many items of each classification and in total need to be counted each day?

Explanation / Answer

Number of 'A' class item = 9000*7% = 630

Number of 'B' class item = 9000*33% = 2970

Number of 'C' class item = 9000 - 630 - 2970 = 5400

A class items to be done monthly. So, 630/20 = 31.5 items daily

B class items to be done quarterly. So, 2970/(20*3) = 49.5 items daily

C class items to be done semiannually. So, 5400/(20*6) = 45 items daily

So, total items to be done daily = 31.5+49.5+45 = 126 items

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