Reduce amount of labor involved in inventory stockrooms

Assignment Help Operation Management

Reference no: EM131126653

In the past, Taylor industries has used a fixed-time period inventory system that involved taking a complete inventory count of all items each month. However, increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor involved in inventory stockrooms, yet without increasing other costs, such as shortage costs. her is a randome sample of 20 of Taylors Items.

Item Number Annual Usage Item Number Annua Usage

1 $1500 11 $13,000

2 12,000 12 600

3 2,200 13 42,000

4 50,000 14 9,900

5 9,600 15 1,200

6 790 16 10,200

7 2,000 17 4,000

8 11,000 18 61,000

9 800 19 3,500

10 15,000 20 2,900

a. What would you recomment Taylor do to cut back its labor cost? (Illustrate using an ABC plan.).

b. Item 15 is critical to continued operations. How would you recommend it be classified?

Reference no: EM131126653

Questions Cloud

Specializes in assembly of high pressures washer systems : Harvey Industries, a Wisconsin company, specializes in the assembly of high pressures washer systems and in the sales or repair parts for these systems. The products range from small portable high pressure washers to large industrial installations fo..

What is the median number of changes in a nine-minute period : A society has as members 20 women, 18 men, and 30 children. How many ways are there to select a committee of 3 women, 2 men, and 1 child? How many ways are there to select a committee of 6 members if the only restriction is that there be at least 1..

What happens in the market for hotel rooms : From the graph that you picked, what would be the result during the winter if hotel rates stayed at their summer level?.

Teams that meet face-to-face : Teams that meet face-to-face a. Are more effective than virtual teams b. Are less effective than virtual teams c. Can be equally as effective as virtual teams d. Often encounter more interpersonal issues than virtual teams

Reduce amount of labor involved in inventory stockrooms : Taylor industries has used a fixed-time period inventory system that involved taking a complete inventory count of all items each month. However, increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of..

Write paper about consumer protection and the internet : Write a 5 page paper written in APA format about Consumer Protection and the Internet

Use as example the ordering policy for white percale sheets : Dunstreet's Department Store would like to develop an inventory ordering policy of a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. How many sheets..

Alternative solutions that can be considered by stakeholders : Jermaine and Monica are in a really great band. They would really like to play more shows and get more people to listen to their music. The problem is that they live in a small town that is far from any big city. Devise a goal setting plan that will..

Explain the development of one or two aspects of science : The goal is to write an essay of 1500 words, in which you examine the development of one or two aspects of science during a narrow time period (for example, try to limit it to 50 years, e.g. 600-650 BCE).

User Account

All Pages