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L. Houts Plastics is a large manufacturer of injection moulded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification system?
L. Houts Plastics Charlotte Inventory Levels
Item Code # Average Inventory (units) Value ($/unit)
1289 400 3.75
2347 300 4.00
2349 120 2.50
2363 75 1.50
2394 60 1.75
2395 30 2.00
6782 20 1.15
7844 12 2.05
8210 8 1.80
8310 7 2.00
9111 6 3.00
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The following table shows financial data for Costco and wal mart: CostcoInventories: $3,643Sales (net): $48106COGS: $41651 Wal Mart:Inventories: $29447Sales (net): $286103COG
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