Description
Discussion Description
Comment on Case Study Margate Hospital in the textbook page 370
Discussion Requirements
Comment on the following points:
- Respond to the questions at the end of the case and comment on classmate responses.
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Explanation & Answer
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1
Margate hospital Case study
Name
Institution Affiliation
Course Name
Instructor
2
Using the case data, propose a breakdown for an ABC analysis and clearly outline how the
hospital might manage
Based on the data provided from the case study, the SKU items are divided into three
groups and from the highest to lowest with respect to their total annual dollar usage. Category A
is the highest, and it involves items that range from $4001 to $6000. Category B includes items
with total dollar usage ranging from $1501 to $40000. The last group is C, which shows items
with a total dollar usage of a maximum of $ 1500.
TOTAL USAGE
SKU (ANNUALLY)
1
212
2
210
3
117
4
77
5
60
6
48
7
33
8
27
9
19
10
18
11
12
12
7
13
4
14
4
15
3
16
3
17
3
18
2
19
1
20
1
AVERAGE
COST(PER UNIT)
$
24.00
$
2.00
$
50.00
$
28.00
$
58.00
$
55.00
$
73.00
$
210.00
$
74.00
$
45.00
$
33.00
$
65.00
$
41.00
$
20.00
$
72.00
$
61.00
$
8.00
$
134.00
$
34.00
$
29.00
TOTAL $ USAGE
$
5,088...