Lesson 5 ABC classification exercise.

xls
% of
Unit Annual Annual Cumulative Cumulative
Item Price Unit Volume Revenue Revenue Revenue
$
1 5 10
2 10 200
3 50 100
4 8 10
5 10 80
6 40 20
7 20 400
8 100 50
9 12 1000
10 8 2000
11 5 1000
12 10 300
13 50 400
14 8 10000
15 10 4000
16 40 80
17 20 2500
18 100 60
19 12 7000
20 8 1500
Lesson 5 ABC classification exercise.xls
% of
Unit Annual Annual Cumulative Cumulative
Item Price Unit Volume Revenue Revenue Revenue ABC Classification
$
19 12 7000 84000 84000 24% A
14 8 10000 80000 164000 46% A
17 20 2500 50000 214000 61% A
15 10 4000 40000 254000 72% A
13 50 400 20000 274000 78% A
10 8 2000 16000 290000 82% B
9 12 1000 12000 302000 86% B
20 8 1500 12000 314000 89% B
7 20 400 8000 322000 91% B
18 100 60 6000 328000 93% B
3 50 100 5000 333000 94% B
8 100 50 5000 338000 96% C
11 5 1000 5000 343000 97% C
16 40 80 3200 346200 98% C
12 10 300 3000 349200 99% C
2 10 200 2000 351200 100% C
5 10 80 800 352000 100% C
6 40 20 800 352800 100% C
4 8 10 80 352880 100% C
1 5 10 50 352930 100% C

Note:
1 - 79% = A

80 - 94% = B

95 - 100% = C

A category is 25% of total 20 SKUs. B category is 30% of total SKUs and C category is 45% of
total SKUs.