Question

12.3 Jean-Marie Bourjolly's restaurant has the following inventory items that it orders on a weekly basis: INVENTORY ITEM S VALUE/CASE # ORDERED/WEEK Ribeye steak 135 3 Lobster tail 245 3 Pasta 23 12 Salt 3 2 Napkins 12 2 Tomato sauce 23 11 French fries 43 32 Pepper 3 3 Garlic powder 11 3 Trash can liners 12 3 Table cloths 32 5 Fish filets 143 10

Answer 1

Note: All the parts have been done as shown. In case of any doubt, please mention it in the comment. Thank you.

COSTI CASE WEEKLY DEMAND ITEM RIBEYE STEAK LOBSTER TAIL ANNUAL DOLLAR VOLUME 405 735 135 245 3 3 PASTA 23 12 276 SALT 3 2 6 12 23 2 11 32 43 24 253 1376 9 33 3 3 11 3 36 3 5 10 NAPKINS TOMATO SAUCE FRENCH FRIES PEPPER GARLIC POWDER TRASH CAN LINERS TABLE CLOTHS FISH FILETS PRIME RIB ROASTS OIL LETTUCE (CASE) CHICKENS ORDER PADS EGGS (CASE) BACON SUGAR 6 2 12 32 143 166 28 35 75 12 22 56 4 24 160 1430 996 56 840 1050 24 154 280 14 2 7 5 2 8

ARRANGE THE ITEMS IN ASCENDING ORDER OF ANNUAL DOLLAR VOLUME COST CASE WEEKLY DEMAND % OF TOTAL USAGE 17.54% 10 143 43 32 16.88% ANNUAL DOLLAR VOLUME 1430 1376 1050 996 840 735 14 75 166 35 245 135 56 23 6 24 3 3 405 12 ITEM FISH FILETS FRENCH FRIES CHICKENS PRIME RIB ROASTS LETTUCE (CASE) LOBSTER TAIL RIBEYE STEAK BACON PASTA TOMATO SAUCE TABLE CLOTHS EGGS (CASE) OIL TRASH CAN LINERS GARLIC POWDER ORDER PADS NAPKINS PEPPER SUGAR SALT 280 276 253 CUMULATIVE % OF TOTAL USAGE 17.54% 34.43% 47.31% 59.53% 69.83% 78.85% 83.82% 87.25% 90.64% 93.74% 95.71% CATEGORY C 97.60% CATEGORY C 98.28% CATEGORY C 98.72% CATEGORY C 99.13% CATEGORY C 99.42% CATEGORY C 99.72% CATEGORY C 99.83% CATEGORY C 99.93% CATEGORY C 100.00% CATEGORY C 23 11 160 32 22 28 12.88% 12.22% 10.31% 9.02% 4.97% 3.44% 3.39% 3.10% 1.96% 1.89% 0.69% 0.44% 0.40% 0.29% 0.29% 0.11% 0.10% 0.07% 5 7 2 3 154 56 12 11 12 36 33 24 24 12 2. SUM = 8151

(A) MOST EXPENSIVE ITEM USING ANNUAL DOLLAR VOLUME IS FISH FILETS. CATEGORY C ITEMS ACCOUNT FOR ONLY LESS THAN 5% OF THE TOTAL ANNUAL DOLLAR VOLUME AND REPRESNT 50% OF TOTAL INVENTORY ITEMS. FORMULAS TOTAL ANNUAL DOLLAR VOLUME = WEEKLY DEMAND X COST/ CASE % OF TOTAL USAGE = (ANNUAL DOLLAR VOLUME/SUM OF ANNUAL DOLLAR VOLUME) X 100