Consider a warehouse with 5 SKU’s. The unit selling prices for these 5 items are
ID: 456317 • Letter: C
Question
Consider a warehouse with 5 SKU’s. The unit selling prices for these 5 items are $10, $5, $120, $500, and $ 24 respectively. The annual sales volume for these 5 items are 12,000 units, 1,000 units, 2,000 units, 20 units, and 300 units. According to our discussion on inventory profiling, what percentage of the annual sales is the result from the top 20% of the SKU’s? Ignore the percentage sign and round your answer to the nearest integer. For example, if your answer is 34.56%, input 35; if your answer is 12.23%, input 12
Explanation / Answer
SKU
Unit selling price
Annual Sales in units
Profit (unit price *sales in Unit)
% of total sales
1
$10
12000
$120000
31%
2
$5
1000
$5000
1%
3
$120
2000
$240000
63%
4
$500
20
$10000
3%
5
$24
300
$7200
2%
Total
$382200
100%
percentage of the annual sales is the result from the top 20% of the SKU’s = sale from SKU 3
=( $ 120 * 2000)/ 382200 = $ 240000 /382200 = 63%
SKU
Unit selling price
Annual Sales in units
Profit (unit price *sales in Unit)
% of total sales
1
$10
12000
$120000
31%
2
$5
1000
$5000
1%
3
$120
2000
$240000
63%
4
$500
20
$10000
3%
5
$24
300
$7200
2%
Total
$382200
100%