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ABC Analysis Sample

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21 views4 pages

ABC Analysis Sample

Uploaded by

s2121709
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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PERCENT OF
ITEM STOCK ANNUAL VOLUME
NUMBER OF ITEMS x UNIT COST =
NUMBER (UNITS)
STOCKED

#10286 20% 1,000 $ 90.00


#11526 500 154
#12760 1,550 17
#10867 30% 350 42.86
#10500 1,000 12.5
#12572 600 $ 14.17
#14075 2,000 0.6
#01036 50% 100 8.5
#01307 1,200 0.42
#10572 250 0.6
8,550
-5 -6 -7
ANNUAL PERCENT OF
DOLLAR ANNUAL DOLLAR CLASS
VOLUME VOLUME

90,000 A
77,000 A
26,350 B
15,001 B
12,500 B
8,502 C
1,200 C
850 C
504 C
150 C
232,057
Annual
Annual Number
Items Cost Per Unit Consumption
of Units Sold
Value
1 21,000 0.5 10,500
2 10,000 0.5 5,000
3 16,000 1.5 24,000
4 50,000 3.5 175,000
5 15,000 0.1 1,500
6 40,000 2 80,000
7 80,000 0.03 2,400
8 120,000 0.05 6,000
9 15,000 0.25 3,750
10 10,000 1.5 15,000

Annual % of Annual % of Annual


Annual Number
Items Cost Per Unit Consumption Number of Consumption
of Units Sold
Value Units Sold Value
4 50,000 3.5 175,000 13.3% 54.2%
6 40,000 2 80,000 10.6% 24.8%
3 16,000 1.5 24,000 4.2% 7.4%

10 10,000 1.5 15,000 2.7% 4.6%


1 21,000 0.5 10,500 5.6% 3.2%

8 120,000 0.05 6,000 31.8% 1.9%


2 10,000 0.5 5,000 2.7% 1.5%
9 15,000 0.25 3,750 4.0% 1.2%
7 80,000 0.03 2,400 21.2% 0.7%
5 15,000 0.1 1,500 4.0% 0.5%
Total 377,000 323,150
Step 1 Compute the annual consumption value for each item

Step 2 List the products in descending order based on their annual consumption value.

Step 3 Total up the number of units sold and the annual consumption value.

Calculate the cumulative percentage of items sold and cumulative percentage of the
Step 4 annual consumption values using the totals.

Determine the thresholds for splitting the data into A, B and C categories. The
threshold for determining the ABC split will be unique to your company and your
Step 5 product mix, but typically it’s close to 80%/15%/5%.

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