16668798 abc analysis for inventory

8/17/2019 16668798 ABC Analysis for Inventory

1/30


2/30

ABC Analysis for

InventoryMichael Iosua

MBA 530, Dr. Foster Class of 2009


3/30


4/30


5/30

Brainstormin% /ercise

#hich items contriute most to your!ollar volume$

#hat is your inventory control metho!$

(o) much inventory is )aste! !ue tolac* of inventory control$


6/30


7/30

Dra)ac*s of ABC Analysis forInventory

8ess control over B an! C, etc. items &ot an +allurose- inventory controlmetho!

:rofit not necessarily ma/imi6e!


8/30

(o) !oes ABC analysis )or*$tes in ABC Analysis;

". Determine the !ollar volume2. an* items.

3. Calculate the ercenta%e !ollar volume

for each item.


9/30

(o) !oes ABC analysis )or*$


10/30

A +eal #orl!- /amle

amMart :ro!uceDeartment


11/30

amMart :ro!uce Det.

Continually !ums ro!uce !ue tosoila%e

(as !ifficulty *eein% its stoc* current

Must re!uce soila%e costs


12/30

amMart :ro!uce Det.

:ro!uct :oun!s ol! Cost>l ? 7alue

Man%oes 10 ? '.00

8ettuce "000 ? ".00

Bananas 500 ? .5

@omatoes "000 ? 2.00

@otals "00

amMart :ro!uce Det.


13/30

te ne; Determine !ollar value

:ro!uct :oun!s ol! Cost>l ? 7alue

Man%oes 150 ? '.50 ? 2925.00

8ettuce "950 ? .50 ? 95.00

Bananas 2500 ? .10 ? "500.00

@omatoes 900 ? .90 ? 4"0.00

@otals 1000 ? 12"0.00


14/30

te @)o; an* Items

an* :ro!uct ? 7alue of ?Cum of ?value

Cum of units Class

" Man%oes ? 2925

2 Bananas ? "500

3 8ettuce ? 95

' @omatoes ? 4"0

@otals ? 12"0


15/30

te @hree; Calculate ercenta%eof total !ollar volume for each item


Cum of units

Class

" Man%oes ? 2925 '."

2 Bananas ? "500 2'.2

3 8ettuce ? 95 "5.

' @omatoes ? 4"0 "3.0

@otals ? 12"0 "00.0


16/30

te Four; Determine cumulativeercenta%es


Cum of units Class

" Man%oes ? 2925 '." '." "0.4

2 Bananas ? "500 2'.2 ".3 52.5

3 8ettuce ? 95 "5. 4.0 45.0' @omatoes ? 4"0 "3.0 "00.0 "00.0

@otals ? 12"0 "00.0


17/30


18/30

ABC Analysis /ercise

arnhar!t AutoMart ells )ater um, timin% elt, oil filter,

uart of oil

&ee!s to imrove inventory control


19/30

arnhar!t AutoMart

:ro!uct Items sol! Cost er item ? 7alue

#ater :um "0 ? "50

@imin% elt "0 ? 50

il filter 50 ? "5

il uart "00 ? 3

@otals "0


20/30


21/30

Further ea!in%s Bhattacharya, AriitE ar*ar, BianE Mu*heree, anat.


22/30

Further ea!in%s


23/30

Aen!i/


24/30

eferences Fuerst, #illiam . MA88 BHI& G@ A &#

8J A@ ABC A&A8I F I&7&@

C&@8. Journal of Small Business Management ,'5


25/30

arnhar!t AutoMart


#ater :um "0 ? "50

@imin% elt "0 ? 50

il filter 50 ? "5

il uart "00 ? 3

@otals "0


26/30

te ne; Determine !ollar value


#ater :um "0 ? "50 ? "500

@imin% elt "0 ? 50 ? 500

il filter 50 ? "5 ? 50

il uart "00 ? 3 ? 300

@otals "0 ? 3050


27/30

te @)o; an* Items

an* :ro!uct ? 7alue of ?Cum of ?

value

Cum of units

Class

" #aterum

? "500

2 il filter ? 50

3 @imin%elt

? 500

' il uart ? 300

@otals ? 3050


28/30

te @hree; Calculate ercenta%eof total !ollar volume for each item

an* :ro!uct ? 7alue of ?

Cum

of ?value

Cum of units Class

" #aterum

? "500 '9.2

2 il filter ? 50 2'.1

3 @imin%elt

? 500 "1.'

' il uart ? 300 9.4

@otals ? 3050 "00.0


29/30

te Four; Determine cumulativeercenta%es


Cum

of ?value

Cum of units Class

" #aterum

? "500 '9.2 '9.2 5.9

2 il filter ? 50 2'.1 3.4 35.3

3 @imin%elt ? 500 "1.' 90.2 '".2

' il uart ? 300 9.4 "00.0 "00.0

@otals ? 3050 "00.0


30/30

te Five; Classify items


Cum

of ?value

Cum

of units Class

" #aterum ? "500 '9.2 '9.2 5.9 A

2 il filter ? 50 2'.1 3.4 35.3 B

3 @imin%elt ? 500 "1.' 90.2 '".2 C

' il uart ? 300 9.4 "00.0 "00.0 D

@otals ? 3050 "00.0

16668798 abc analysis for inventory

Documents