Your TasksRead the “Supplies4Medics” Case Study in Slack, et al Chapter 9, pp. 339 – 341, then answer the questions below. A template spreadsheet is available for you to carry out this exercise. The spreadsheet is table 9.10 from the case study – just to save you re-typing it. Questions1. Prepare a spreadsheet-based ABC analysis of usage value.Classify as follows:A items: top 20 per cent of usage valueB items: next 30 per cent of usage valueC items: remaining 50 per cent of usage valueYou will need to plot cumulative usage value against the percentage of the sample represented by that cumulative usage value. Note that you are working with a sample of 20 inventory items, and so each item in the sample represents 5% of the total.2. Calculate the inventory weeks for each item, for each classification, and for all the items in total. Does this suggest that the Operations Manager’s estimate of inventory weeks is correct? If so, what is your estimate of the overall inventory at the end of the base year, and how much might that have increased during the year?In case you are unfamiliar with the term, “Inventory weeks”, it is the number of weeks of inventory, at current consumption rates, that we hold right now. You have last year’s sales for each item, and you have the current stock levels, so you can work this figure out quite easily.3. Based on the sample, analyse the underlying causes of the availability problem described in the text.Upload RequirementYour answers should take the form of a spreadsheet with a little supporting text for question 3.Sample Cat. ref.
numbe number
r
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
11036
11456
11563
12054
12372
12774
12979
13063
13236
13454
13597
13999
14068
14242
14310
14405
14456
14675
14854
24943
Sales Unit Description
Sales Unit
Cost (€)
Disposable Aprons (10pk)
Ear-loop Masks(Box)
Drill Type 164
Incontinence Pads Large
150ml Syringe
Rectal Speculum 3 Prong
Pocket Organiser Blue
Oxygen Trauma Kit
Zinc Oxide Tape
Dual Head Stethoscope
Disp. Latex Catheter
Roll-up Wheelchair Ramp
WashClene Tube
Cervical Collar
Head Wedge
Three-Wheel Scooter
Neonatal Trach. Tube
Mouldable Strip Paste
Sequential Comp. Pump
Toilet Safety Frame
EUR2.40
EUR3.60
EUR1.10
EUR3.50
EUR11.30
EUR17.40
EUR7.00
EUR187.00
EUR1.50
EUR6.25
EUR0.60
EUR152.50
EUR1.40
EUR12.00
EUR89.00
EUR755.00
EUR80.40
EUR10.20
EUR430.00
EUR25.60
Last 12 Inventory as Reorder
mo.
at last year Quantity
sales
end (units) (units)
(units)
100
0
10
6,000
120
1000
220
420
250
35,400
8,500
10000
430
120
100
65
20
20
120
160
500
40
2
10
1,260
0
50
10
16
25
3,560
12
20
12
44
50
22,500
10,500
8000
140
24
20
44
2
10
14
5
5
268
6
100
1,250
172
100
430
40
50
560
18
20
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