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ABC Analysis

The document presents data on item usage and costs from three assignments. It includes information on the item number, unit cost, annual demand, total cost per year, order decreasing by usage percentage, and cumulative percentage of total usage and item share. The highest usage items in Assignment 1 were Items 1 and 2, accounting for nearly half the total usage. In Assignment 2, Items 1, 2 and 3 had the highest usage, making up over half of the total. Assignment 3 was led by Items 1, 2 and 4 in terms of usage, collectively making up over 55% of the total.

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Eba Zewude
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86 views4 pages

ABC Analysis

The document presents data on item usage and costs from three assignments. It includes information on the item number, unit cost, annual demand, total cost per year, order decreasing by usage percentage, and cumulative percentage of total usage and item share. The highest usage items in Assignment 1 were Items 1 and 2, accounting for nearly half the total usage. In Assignment 2, Items 1, 2 and 3 had the highest usage, making up over half of the total. Assignment 3 was led by Items 1, 2 and 4 in terms of usage, collectively making up over 55% of the total.

Uploaded by

Eba Zewude
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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EXAMPLE

Usage Cumulat
Order Cumulati
Item Unit Annual Total cost Decreasi as % of % Item ive %
ed ve % of
No. cost demand per year ng Order total share Item
Items total
usage Share
101 5 48,000 240,000 107 360000 48.79 48.79 10.00 10.00
102 11 2,000 22,000 101 240000 32.52 81.31 10.00 20.00
103 15 300 4,500 109 45000 6.10 87.41 10.00 30.00
104 8 800 6,400 105 33600 4.55 91.96 10.00 40.00
105 7 4,800 33,600 102 22000 2.98 94.95 10.00 50.00
106 16 1,200 19,200 106 19200 2.60 97.55 10.00 60.00
107 20 18,000 360,000 104 6400 0.87 98.41 10.00 70.00
108 4 300 1,200 110 6000 0.81 99.23 10.00 80.00
109 9 5,000 45,000 103 4500 0.61 99.84 10.00 90.00
110 12 500 6,000 108 1200 0.16 100.00 10.00 100.00
Total usage 737,900 100.00

Assignment 1

Usage Cumulat
Order Cumulati
Item Unit Annual Total cost Decreasi as % of % Item ive %
ed ve % of
No. cost demand per year ng Order total share Item
Items total
usage Share
1 10 30,000 300,000 2 4,200,000 47.97 47.97 10.00 10.00
2 15 280,000 4,200,000 6 2,200,000 25.13 73.10 10.00 20.00
3 10 3000 30,000 9 900,000 10.28 83.38 10.00 30.00
4 5 110000 550,000 4 550,000 6.28 89.66 10.00 40.00
5 5 4,000 20,000 8 400,000 4.57 94.23 10.00 50.00
6 10 220,000 2,200,000 1 300,000 3.43 97.66 10.00 60.00
7 5 15,000 75,000 10 80,000 0.91 98.57 10.00 70.00
8 5 80000 400,000 7 75,000 0.86 99.43 10.00 80.00
9 15 60,000 900,000 3 30,000 0.34 99.77 10.00 90.00
10 10 8000 80,000 5 20,000 0.23 100.00 10.00 100.00
Total usage 8,755,000 100.00

Assignment 2

No of Cumulati
Unit Usage
Units Order ve % of Cumulat
Item cost in Total cost Decreasi as % of % Item
used ed total ive %
No. Thousa per year ng Order total share
Per Items (Resourc Itme
nd RS usage
Annum e)
1 0.15 30,000 4,500 5 11,700 32.09 32.09 10.00 10.00
2 14 72 1,008 9 4,800 13.17 45.26 10.00 20.00
3 0.01 60000 600 1 4,500 12.34 57.60 10.00 30.00
4 1 2400 2,400 8 4,000 10.97 68.57 10.00 40.00
5 15 780 11,700 10 3,250 8.91 77.49 10.00 50.00
6 0.5 3,600 1,800 4 2,400 6.58 84.07 10.00 60.00
7 0.8 3,000 2,400 7 2,400 6.58 90.65 10.00 70.00
8 0.04 100000 4,000 6 1,800 4.94 95.59 10.00 80.00
9 40 120 4,800 2 1,008 2.76 98.35 10.00 90.00
10 0.5 6500 3,250 3 600 1.65 100.00 10.00 100.00

36,458 36,458
TOTAL USAGE 100.00
Order Usage as
Item Unit Annual Total cost Decreasi
ed % of total
No. cost demand per year ng Order
Items usage

1 10 30,000 300,000 2 4,200,000 47.97


2 15 280,000 4,200,000 6 2,200,000 25.13
3 10 3000 30,000 9 900,000 10.28
4 5 110000 550,000 4 550,000 6.28
5 5 4,000 20,000 8 400,000 4.57
6 10 220,000 2,200,000 1 300,000 3.43
7 5 15,000 75,000 10 80,000 0.91
8 5 80000 400,000 7 75,000 0.86
9 15 60,000 900,000 3 30,000 0.34
10 10 8000 80,000 5 20,000 0.23
Total usage 8,755,000 100.00

Unit
No of
cost Usage as
Units Orde Decrea
Item in Total cost % of
used red sing
No. Thou per year total
Per Items Order
sand usage
Annum
RS
1 0.15 30,000 4,500 5 11,700 32.09
2 14 72 1,008 9 4,800 13.17
3 0.01 60000 600 1 4,500 12.34
4 1 2400 2,400 8 4,000 10.97
5 15 780 11,700 10 3,250 8.91
6 0.5 3,600 1,800 4 2,400 6.58
7 0.8 3,000 2,400 7 2,400 6.58
8 0.04 100000 4,000 6 1,800 4.94
9 40 120 4,800 2 1,008 2.76
10 0.5 6500 3,250 3 600 1.65
TOTAL USAGE 36,458 36,458 100.00
Cumulativ
e % of % Item
total

47.97 10.00
73.10 20.00
83.38 30.00
89.66 40.00
94.23 50.00
97.66 60.00
98.57 70.00
99.43 80.00
99.77 90.00
100.00 100.00

Cumulat
ive % of Cumulat
% Item
total ive %
share
(Resour Itme
ce)
32.09 10.00 10.00
45.26 10.00 20.00
57.60 10.00 30.00
68.57 10.00 40.00
77.49 10.00 50.00
84.07 10.00 60.00
90.65 10.00 70.00
95.59 10.00 80.00
98.35 10.00 90.00
100.00 10.00 100.00
100.00
11700
4800
4500
4000
3250
2400
2400
1800
1008
600

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