Exercise : conduct ABC analysis according to following classification criteria : profitability
Class % items cumul % items % main criterium
A 20% 20% 80%
B 30% 50% 15%
C 50% 100% 5%
article demand (items) price (€) Margin (%) Winstgevendheid Winstgevendheid
9 900 37 28 9324 45.4%
1 700 50 23 8050 39.2%
3 100 41 29 1189 5.8%
4 120 52 14 873.6 4.2%
6 80 16 25 320 1.6%
7 30 30 29 261 1.3%
10 20 46 28 257.6 1.3%
8 40 41 13 213.2 1.0%
2 12 31 12 44.64 0.2%
5 12 18 11 23.76 0.1%
,rofitability
Cumul items % Cumul
45.4% 10% 10% A
84.5% 10% 20% A
90.3% 10% 30% B
94.6% 10% 40% B
96.1% 10% 50% B
97.4% 10% 60% C
98.6% 10% 70% C
99.7% 10% 80% C
99.9% 10% 90% C
100.0% 10% 100% C
,The data provided has already undergone an assortment analysis (see lesson 4)
The inventory manager wants to compare 2 inventory policies
Therefore we want to calculate the total inventory cost for comparision
Rule of thumb coverage : target buffer stock is 60 days
Holding cost percentage h= 29%
Holding cost / item H= h*c
Opslagkost van 1 item gedurende 1 jaar
Show under and over coverage
Item yearly
Number stock on hand demand sales price (€) # orders/yr
110692 207 5,172 18.84 589.00
110854 192 540 6.59 494.00
112344 508 1,607 3.96 278.00
119888 319 1,022 5.97 154.00
121884 450 1,706 3.71 222.00
138175 1,061 4,280 6.12 696.00
139072 331 1,180 55.18 224.00
143814 11 48 131.33 48.00
152798 524 1,899 1.62 260.00
172375 411 2,095 6.27 364.00
183685 182 570 15.16 432.00
208182 1 4 1.44 1.00
226728 41 516 17.30 281.00
233044 76 2,712 32.01 639.00
233295 198 644 26.13 188.00
236499 621 2,317 9.77 462.00
249904 204 1,344 15.40 183.00
269326 53 1,097 3.44 206.00
296085 382 1,948 16.68 447.00
301770 29 80 4.90 10.00
309180 249 1,416 5.79 175.00
312160 140 780 22.50 262.00
322380 12 1,015 8.30 54.00
328441 216 1,314 4.14 247.00
329097 93 294 2.10 287.00
347340 248 2,580 9.34 158.00
377017 448 2,545 3.22 167.00
412475 345 1,093 35.00 299.00
413591 31 221 15.00 24.00
413708 477 3,410 13.10 808.00
422583 44 1,219 9.18 194.00
, 426957 2,292 7,539 2.66 324.00
493561 855 3,448 28.10 43.00
513299 334 1,145 5.99 59.00
529406 148 1,476 27.84 307.00
561948 158 582 4.61 344.00
575236 262 705 34.29 161.00
579873 14 509 18.35 143.00
601064 312 2,231 9.57 520.00
612116 604 2,396 16.51 512.00
641639 567 1,795 30.34 376.00
672675 578 2,095 8.88 403.00
684127 151 598 13.15 214.00
688765 141 1,765 16.59 407.00
719676 284 1,165 9.59 129.00
721112 104 1,004 4.37 486.00
722845 291 1,321 3.90 223.00
740710 60 332 20.72 168.00
748361 6 63 95.00 50.00
750678 89 651 11.21 130.00
752033 51 1,418 49.01 378.00
767219 329 1,749 2.83 405.00
770717 46 464 27.87 261.00
775841 18 413 16.81 54.00
784156 347 1,398 4.57 203.00
794845 484 1,330 17.02 323.00
803714 241 914 18.65 352.00
806210 150 645 18.35 128.00
831064 28 383 26.89 257.00
850506 430 1,793 120.00 244.00
853113 308 1,086 16.91 424.00
881072 214 1,670 8.41 273.00
893264 771 2,717 1.64 113.00
897682 253 717 150.00 337.00
916794 686 2,042 20.12 376.00
935938 400 3,334 3.26 659.00
941663 13 184 43.37 27.00
944867 29 422 17.17 32.00
948253 206 1,122 6.32 495.00
950875 229 1,060 21.40 168.00
986157 384 3,204 5.11 597.00
986370 78 1,401 5.14 260.00
995184 910 3,345 4.58 824.00
73
401497 833 1.24 490.00
740916 309 19.44 262.00
882354 608 5.31 221.00
976121 1,195 2.07 249.00
885577 440 4.64 366.00
862786 407 4.50 233.00
115102 1,483 3.92 217.00
294171 252 13.35 94.00
672390 813 3.31 44.00
Class % items cumul % items % main criterium
A 20% 20% 80%
B 30% 50% 15%
C 50% 100% 5%
article demand (items) price (€) Margin (%) Winstgevendheid Winstgevendheid
9 900 37 28 9324 45.4%
1 700 50 23 8050 39.2%
3 100 41 29 1189 5.8%
4 120 52 14 873.6 4.2%
6 80 16 25 320 1.6%
7 30 30 29 261 1.3%
10 20 46 28 257.6 1.3%
8 40 41 13 213.2 1.0%
2 12 31 12 44.64 0.2%
5 12 18 11 23.76 0.1%
,rofitability
Cumul items % Cumul
45.4% 10% 10% A
84.5% 10% 20% A
90.3% 10% 30% B
94.6% 10% 40% B
96.1% 10% 50% B
97.4% 10% 60% C
98.6% 10% 70% C
99.7% 10% 80% C
99.9% 10% 90% C
100.0% 10% 100% C
,The data provided has already undergone an assortment analysis (see lesson 4)
The inventory manager wants to compare 2 inventory policies
Therefore we want to calculate the total inventory cost for comparision
Rule of thumb coverage : target buffer stock is 60 days
Holding cost percentage h= 29%
Holding cost / item H= h*c
Opslagkost van 1 item gedurende 1 jaar
Show under and over coverage
Item yearly
Number stock on hand demand sales price (€) # orders/yr
110692 207 5,172 18.84 589.00
110854 192 540 6.59 494.00
112344 508 1,607 3.96 278.00
119888 319 1,022 5.97 154.00
121884 450 1,706 3.71 222.00
138175 1,061 4,280 6.12 696.00
139072 331 1,180 55.18 224.00
143814 11 48 131.33 48.00
152798 524 1,899 1.62 260.00
172375 411 2,095 6.27 364.00
183685 182 570 15.16 432.00
208182 1 4 1.44 1.00
226728 41 516 17.30 281.00
233044 76 2,712 32.01 639.00
233295 198 644 26.13 188.00
236499 621 2,317 9.77 462.00
249904 204 1,344 15.40 183.00
269326 53 1,097 3.44 206.00
296085 382 1,948 16.68 447.00
301770 29 80 4.90 10.00
309180 249 1,416 5.79 175.00
312160 140 780 22.50 262.00
322380 12 1,015 8.30 54.00
328441 216 1,314 4.14 247.00
329097 93 294 2.10 287.00
347340 248 2,580 9.34 158.00
377017 448 2,545 3.22 167.00
412475 345 1,093 35.00 299.00
413591 31 221 15.00 24.00
413708 477 3,410 13.10 808.00
422583 44 1,219 9.18 194.00
, 426957 2,292 7,539 2.66 324.00
493561 855 3,448 28.10 43.00
513299 334 1,145 5.99 59.00
529406 148 1,476 27.84 307.00
561948 158 582 4.61 344.00
575236 262 705 34.29 161.00
579873 14 509 18.35 143.00
601064 312 2,231 9.57 520.00
612116 604 2,396 16.51 512.00
641639 567 1,795 30.34 376.00
672675 578 2,095 8.88 403.00
684127 151 598 13.15 214.00
688765 141 1,765 16.59 407.00
719676 284 1,165 9.59 129.00
721112 104 1,004 4.37 486.00
722845 291 1,321 3.90 223.00
740710 60 332 20.72 168.00
748361 6 63 95.00 50.00
750678 89 651 11.21 130.00
752033 51 1,418 49.01 378.00
767219 329 1,749 2.83 405.00
770717 46 464 27.87 261.00
775841 18 413 16.81 54.00
784156 347 1,398 4.57 203.00
794845 484 1,330 17.02 323.00
803714 241 914 18.65 352.00
806210 150 645 18.35 128.00
831064 28 383 26.89 257.00
850506 430 1,793 120.00 244.00
853113 308 1,086 16.91 424.00
881072 214 1,670 8.41 273.00
893264 771 2,717 1.64 113.00
897682 253 717 150.00 337.00
916794 686 2,042 20.12 376.00
935938 400 3,334 3.26 659.00
941663 13 184 43.37 27.00
944867 29 422 17.17 32.00
948253 206 1,122 6.32 495.00
950875 229 1,060 21.40 168.00
986157 384 3,204 5.11 597.00
986370 78 1,401 5.14 260.00
995184 910 3,345 4.58 824.00
73
401497 833 1.24 490.00
740916 309 19.44 262.00
882354 608 5.31 221.00
976121 1,195 2.07 249.00
885577 440 4.64 366.00
862786 407 4.50 233.00
115102 1,483 3.92 217.00
294171 252 13.35 94.00
672390 813 3.31 44.00
