1. A company has 8000 units on hand and the annual usage is 50,000 units. There are 250 working days in the year. What are the days of supply? 2. a. The Ajex Company has several of items they store in...

1. A company has 8000 units on hand and the annual usage is 50,000 units. There are

250 working days in the year. What are the days of supply?

2. a. The Ajex Company has several of items they store in inventory. The table below

shows the annual demand, and the item cost. Develop a logical classification for

the inventory based on ABC:

ITEM ITEM COST ANNUAL USAGE (# units)

C34 $12 4000

B99 $23 8000

V94 $19 5500

H64 $41 1200

P77 $72 400

Y12 $62 1100

R74 $33 1440

b. One additional item, the M22, has a very low usage (300 per year) and a low item

cost ($3 per unit), but has a very long lead time and is often difficult to obtain.

How should that item be handled and why?