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INVENTORY CONTROL TECHNIQUE ABC ANALYSIS
ABC ANALYSIS - 1 ,[object Object],[object Object],[object Object],[object Object],[object Object]
ABC ANALYSIS - 2 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
STEPS IN ABC ANALYSIS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
TABLE 1: DETERMINATION OF RANKS BY ANNUAL USAGE IN US$ Item # Average usage (units) Unit cost (US$) Annual usage (US$)  Rank 1 17 2.5 2 50 17 3 15 15 4 25 17 5 5 17 6 50 119 7 153 5 8 20 2.125 9 16 2.656 10 17 2.5
TABLE 1: DETERMINATION OF RANKS BY ANNUAL USAGE IN US$ Item # Average usage (units) Unit cost (US$) Annual usage (US$)  Rank 1 17 2.5 42.5 2 50 17 850 3 15 15 225 4 25 17 425 5 5 17 85 6 50 119 5950 7 153 5 765 8 20 2.125 42.5 9 16 2.656 42.5 10 17 2.5 42.5
TABLE 1: DETERMINATION OF RANKS BY ANNUAL USAGE IN US$ Item # Average usage (units) Unit cost (US$) Annual usage (US$)  Rank 1 17 2.5 42.5 8 2 50 17 850 2 3 15 15 225 5 4 25 17 425 4 5 5 17 85 6 6 50 119 5950 1 7 153 5 765 3 8 20 2.125 42.5 7 9 16 2.656 42.5 9 10 17 2.5 42.5 10
TABLE 2:CATEGORIZING THE ITEMS IN ABC RANKING Item # Annual usage (US$) Cumulative annual usage (US$) Annual usage %  Category assigned 6 5950 5950 2 850 6800 7 765 7565 4 425 7990 3 225 8245 5 85 8330 8 42.5 8372.5 1 42.5 8415 10 42.5 8457.5 9 42.5 8500 Total  8500
TABLE 2:CATEGORIZING THE ITEMS IN ABC RANKING Item # Annual usage (US$) Cumulative annual usage (US$) Annual usage %  Category assigned 6 5950 5950 70 2 850 6800 80 7 765 7565 89 4 425 7990 94 3 225 8245 97 5 85 8330 98 8 42.5 8372.5 98.5 1 42.5 8415 99 10 42.5 8457.5 99.5 9 42.5 8500 100 Total  8500
TABLE 2:CATEGORIZING THE ITEMS IN ABC RANKING Item # Annual usage (US$) Cumulative annual usage (US$) Annual usage %  Category assigned 6 5950 5950 70 A 2 850 6800 80 B 7 765 7565 89 B 4 425 7990 94 C 3 225 8245 97 C 5 85 8330 98 C 8 42.5 8372.5 98.5 C 1 42.5 8415 99 C 10 42.5 8457.5 99.5 C 9 42.5 8500 100 C Total  8500
TABLE 3: ABC CATEGORY - SUMMARY category Item# % of items in inventory $ in the category % $ in the category A 6 10 5950 70 B 2, 7 20 1615 19 C 1, 3, 4,5,8,9,10 70 935 11 Total 10 100 8500 100

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Inventory Control ABC Analysis

  • 2.
  • 3.
  • 4.
  • 5. TABLE 1: DETERMINATION OF RANKS BY ANNUAL USAGE IN US$ Item # Average usage (units) Unit cost (US$) Annual usage (US$) Rank 1 17 2.5 2 50 17 3 15 15 4 25 17 5 5 17 6 50 119 7 153 5 8 20 2.125 9 16 2.656 10 17 2.5
  • 6. TABLE 1: DETERMINATION OF RANKS BY ANNUAL USAGE IN US$ Item # Average usage (units) Unit cost (US$) Annual usage (US$) Rank 1 17 2.5 42.5 2 50 17 850 3 15 15 225 4 25 17 425 5 5 17 85 6 50 119 5950 7 153 5 765 8 20 2.125 42.5 9 16 2.656 42.5 10 17 2.5 42.5
  • 7. TABLE 1: DETERMINATION OF RANKS BY ANNUAL USAGE IN US$ Item # Average usage (units) Unit cost (US$) Annual usage (US$) Rank 1 17 2.5 42.5 8 2 50 17 850 2 3 15 15 225 5 4 25 17 425 4 5 5 17 85 6 6 50 119 5950 1 7 153 5 765 3 8 20 2.125 42.5 7 9 16 2.656 42.5 9 10 17 2.5 42.5 10
  • 8. TABLE 2:CATEGORIZING THE ITEMS IN ABC RANKING Item # Annual usage (US$) Cumulative annual usage (US$) Annual usage % Category assigned 6 5950 5950 2 850 6800 7 765 7565 4 425 7990 3 225 8245 5 85 8330 8 42.5 8372.5 1 42.5 8415 10 42.5 8457.5 9 42.5 8500 Total 8500
  • 9. TABLE 2:CATEGORIZING THE ITEMS IN ABC RANKING Item # Annual usage (US$) Cumulative annual usage (US$) Annual usage % Category assigned 6 5950 5950 70 2 850 6800 80 7 765 7565 89 4 425 7990 94 3 225 8245 97 5 85 8330 98 8 42.5 8372.5 98.5 1 42.5 8415 99 10 42.5 8457.5 99.5 9 42.5 8500 100 Total 8500
  • 10. TABLE 2:CATEGORIZING THE ITEMS IN ABC RANKING Item # Annual usage (US$) Cumulative annual usage (US$) Annual usage % Category assigned 6 5950 5950 70 A 2 850 6800 80 B 7 765 7565 89 B 4 425 7990 94 C 3 225 8245 97 C 5 85 8330 98 C 8 42.5 8372.5 98.5 C 1 42.5 8415 99 C 10 42.5 8457.5 99.5 C 9 42.5 8500 100 C Total 8500
  • 11. TABLE 3: ABC CATEGORY - SUMMARY category Item# % of items in inventory $ in the category % $ in the category A 6 10 5950 70 B 2, 7 20 1615 19 C 1, 3, 4,5,8,9,10 70 935 11 Total 10 100 8500 100