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Hosulton is a well known corporate incentives and awards manufacturer in Ontario. Hoselton mass produces blanks and then customizes the blanks for the company and nature of the incentive or award. Hosulton offers three different materials. The most expensive and profitable is sterling silver, the next is wood, and the third is sales for plastic. Hosulton usually has on hand 7,000 blanks as some organizations will order hundreds of items at a time for large events such as a golf tournament where each participant receives a memento. The company uses and ABC inventory classification system. 8% of the items are sterling silver. 35% are wood. The remaining are plastic. The operations manager of Hosulton would like the inventory counted regularly for audit and control purposes. She would like to count the items as follows: Sterling silver monthly, wood quarterly, and plastic semi-annually. She uses 20 working days per month in her inventory calculations.
Problem a) Calculate the daily count of items by applying the cycle counting method.
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