Question – Your company has been working on inventory stratification for a group of products. Your colleagues have already completed the analysis at factor level using Hits, GMROI, and Safety requirements.
Question – Your company has been working on inventory stratification for a group of products. Your colleagues have already completed the analysis at factor level using Hits, GMROI, and Safety requirements.
Your task is to finalize the stratification and provide the management with the final ABC classification.
Your management team suggested that safety requirement is three times more important than hits and hits is two times more important than GMROI for these products.
The management also thinks top 60% should be A items, the next 25% B items, and remaining 10% and 5% should be allocated to C and D items, respectively.
Assume points, points, points, and points for the final analysis.
PLEASE RESPOND IN EXCEL FILES SHOWING REASONING AND FORMULAS
| Hits | GMROI | Safety | |
| 1 | B | D | B |
| 2 | B | B | D |
| 3 | B | D | B |
| 4 | C | A | C |
| 5 | D | D | B |
| 6 | D | D | D |
| 7 | C | C | B |
| 8 | B | C | D |
| 9 | A | B | A |
| 10 | D | C | D |
| 11 | C | D | D |
| 12 | B | B | B |
| 13 | B | B | A |
| 14 | C | C | B |
| 15 | A | C | C |
| 16 | A | A | B |
| 17 | B | B | C |
| 18 | A | B | B |
| 19 | B | B | B |
| 20 | A | C | D |
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