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    ABC Analysis

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    My Business
    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.

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    ABC Analysis

    Uploaded by

    My Business
    34 views2 pages
    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.

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    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.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    34 views2 pages

    ABC Analysis

    Uploaded by

    My Business
    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.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 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.

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