Scribd
Upload
66 views2 pages

ABC Analysis

The document shows item usage, unit costs, and annual peso values for 9 items. It then performs an ABC classification analysis, finding that items 1, 6, and 8 account for 70.72% of total usage value and are classified as A items, while items 2, 3, 4, 7, and 9 account for 25.51% of total usage value and are classified as B items. Items 5 and 10 account for the remaining 3.78% of total usage value and are classified as C items.

Uploaded by

My Business
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
66 views2 pages

ABC Analysis

The document shows item usage, unit costs, and annual peso values for 9 items. It then performs an ABC classification analysis, finding that items 1, 6, and 8 account for 70.72% of total usage value and are classified as A items, while items 2, 3, 4, 7, and 9 account for 25.51% of total usage value and are classified as B items. Items 5 and 10 account for the remaining 3.78% of total usage value and are classified as C items.

Uploaded by

My Business
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
You are on page 1/ 2

Item Usage Unit Cost (Php)

4021 120 ₱ 900.00


9402 300 ₱ 120.00
4066 30 ₱ 1,400.00
6500 150 ₱ 1,020.00
9280 10 ₱ 700.00
4050 80 ₱ 140.00
6850 200 ₱ 100.00
3010 400 ₱ 200.00
4400 500 ₱ 50.00
1790

ABC CLASSIFICATION
% Usage Value % Items
A = 341, 000/482,200 A = 3/9
A = 70.72% A = 33.33%

B = 123,300/482,200 B = 4/9
B = 25.51% B = 44.44%

C = 18,000/482,200 C = 2/9
C = 3.78% C = 22.22%

CRITICAL THINKING EXERCISE:

Yes, ordering additonal stocks to take advantage of volume discount is


beneficial to the comapany becasue the increasing demands will helps to
boost the profit and increase of sales. As an Inventory Manager, it will
help to identify the good inventory control of the demands of the
customers, reward valuable customers and managing excess stocks.
Annual Peso Value % of Items (Usage) % of Items (Value) Classification
₱ 108,000.00 6.70% 22.40% A
₱ 36,000.00 16.76% 7.47% B
₱ 42,000.00 1.68% 8.71% B
₱ 153,000.00 8.38% 31.73% A
₱ 7,000.00 0.56% 1.45% C
₱ 11,200.00 4.47% 2.32% C
₱ 20,000.00 11.17% 4.15% B
₱ 80,000.00 22.35% 16.59% A
₱ 25,000.00 27.93% 5.18% B
₱ 482,200.00 100.00% 100.00%

4. As an Inventory manager. ABC classification is one of the best chniques


that recognizes and keeps track on the value pf the items in the inventory
based on their demand, risk data and costs. Moreover, it also saves time
and focus on the highest-value or indemand goods such as on the A
classification and not on the low-demand goods which is under the C
classification. Through this way, the companies and business will identify
and match the demands of the customers, help them allocate more
resources and increasing sales while reducing obsolete inventory.

olume discount is
emands will helps to
y Manager, it will
mands of the
excess stocks.

You might also like