ABC Analysis of a Given List of Medications

Divides Inventory into three classes based on Consumption Value.

Class A - High Consumption Value
Class B - Medium Consumption Value
Class C - Low Consumption Value.

ABC Classification Criteria.

Class Cost Cost Percentage Quantity (%) Order Frequency
A High 70-75 5-10 Frequent
B Medium 15-20 15-20 Once in Three Months
C Low 5-10 70-75 Once in Six Months

Steps in ABC Analysis:

1. List the Medicines Purchased/Consumed

2. For each item consumed or purchased, write down

The unit cost of each item

The quantity of each item consumed or purchased.

3. Calculate the Annual Consumption Value

Annual number of Units Sold (per item) x Cost Per Unit
4. List the Medicines in Descending Order Based on their Annual Consumption Value.
5. Total up the number of Units Sold.
6. Total up the Annual Consumption Value
7. Calculate the Percentage of Annual Units Sold.
8. Calculate the Percentage of Annual Consumption Values.
9. Calculate the Cumulative Percentage of Annual Units Sold
10. Calculate the Cumulative Percentage of Annual Consumption Values.
11. Classify the Medicines as per the ABC Classification Criteria.

12. Example
S.No Name of the Drug Unit Cost Annual Consumption
1 Multivitamin Supplements 10 100000
2 Dexamethasone 12 80000
3 Omeprazole 08 60000
4 Cefixime 14 7000
 5 Atenolol 06 40000
6 Thiocolchicoside 16 5000
7 Methotrexate 04 6000
8 Amoxicillin 02 50000
9 Itraconazole 08 1600
10 Metformin 08 82000
13.