Logistics

PRCH-3019

Conducting an ABC Analysis

Analyze the following data to produce an ABC classification based on annual dollar
spend Part A:

Supplier Name Annual Dollar Spend

Texas Instrument $131,890.00
Murata 561,270.00
3M 3,444.00
Emerson Network Power 84,930.00
Fairchild Semiconductor 427,490.00
Celestica Corporation 5,000.00
Mabuchi Motors 6,344.00
Volex 190,562.00
Tyco Electronics 19,672.00
Pegatron 34,000.00
Seiko 100,112.00
Sharp Electronics 3,022.00

Supplier Name Annual $ Spend Cumulative $ Usage A to C or Percentage Classifi

($) Usage ($) Max to Min ($) usage (%) cation
1 Texas 131,890.00 A
Instrument 131890.00 2 561,270.00 35.80
2 Murata 561,270.00 693160.00 5 427,490.00 27.27 A
3 3M 3,444.00 696604.00 8 190,562.00 12.16 A
4 Emerson 84,930.00 B
Network Power 781534.00 1 131,890.00 8.41
5 Fairchild 427,490.00 B
Semiconductor 1209024.00 11 100,112.00 6.39
6 Celestica B
Corporation 5,000.00 1214024.00 4 84,930.00 5.42
7 Mabuchi Motors 6,344.00 1220368.00 10 34,000.00 2.17 C
8 Volex 190,562.00 1410930.00 9 19,672.00 1.25 C
9 Tyco Electronics 19,672.00 1430602.00 7 6,344.00 0.40 C
10 Pegatron 34,000.00 1464602.00 6 5,000.00 0.32 C
11 Seiko 100,112.00 1564714.00 3 3,444.00 0.22 C
12 Sharp 3,022.00 C
Electronics 1567736.00 12 3,022.00 0.19
Total $1,567,736.00 $1,567,736.00 $1,567,736.00 100%
 Logistics
PRCH-3019

Part B:
Part Unit Unit Annual
Number Usage Cost ($) Dollar Usage ($)
1 1,100 2.00 2200
2 600 40.00 24000
3 100 4.00 400
4 1,300 1.00 1300
5 100 60.00 6000
6 10 25.00 250
7 100 2.00 200
8 1,500 2.00 3000
9 200 1.00 200
10 500 1.00 500
Total 38050

Annual Cumulative Usage A to C or Cumulative

Part Percentage
Dollar Dollar Max to Min Percentage Classification
Number Usage
Usage ($) Usage ($) Usage
1 2200 2200 2 $24000.00 63.07% 63.07% A
2 24000 26200 5 $ 6000.00 15.77% 78.84% A
3 400 26600 8 $3000.00 7.88% 86.72% B
4 1300 27900 1 $2200.00 5.78% 92.50% B
5 6000 33900 4 $1300.00 3.42% 95.92% B
6 250 34150 10 $500.00 1.31% 97.23% C
7 200 34350 3 $400.00 1.05% 98.28% C
8 3000 37350 6 $250.00 0.66% 98.94% C
9 200 37550 9 $200.00 0.53% 99.47% C
10 500 38050 7 $200.00 0.53% 100.00% C

Total 38050 38050 100%