Case Study SOLVED A++ || ABC ANALYSIS of MAQ Corporation and 80-20 Parreto Principle || JUNE 2024

MAQ Corporation, a major producer of consumer electronics equipment, is currently faced with a rapidly growing product line and its associated inventory problems. MAQ's president, Mary Semerod, has decided to initiate a program to analyze the company's inventory requirements utilizing different inventory techniques. The first phase of this program consists of an ABC analysis of the company's product line (shown in the following table). Ms. Semerod has encountered difficulties in deciding on the appropriate criteria to use in the classification and in developing appropriate cutoff levels for each class of inventory. To solve her dilemma, Ms. Semerod has contracted the services of a logistics consulting firm to perform the inventory analysis. This is solved using graphical images and charts. Tables included as well.