Annual demand

Product code Pick list frequency

(in thousand)
85058 200 20000
79001 250 15000
67553 400 2000
12865 600 1000
13866 800 500
13700 1000 100
85866 1000 40
72333 100 80
77577 500 10
77212 1000 1
5850

Criteria 1: Value
analysis

Annual demand Revenue per unit

Product code
(in thousand) of product

79001 250 3750000

85058 200 4000000
12865 600 600000
67553 400 800000
13866 800 400000
13700 1000 100000
85866 1000 40000
77577 500 5000
77212 1000 1000
72333 100 8000
 Criteria 2:
Frequency

Frequency
Product code Pick list frequency
percentage

85058 20000 51.6

79001 15000 38.7
67553 2000 5.2
12865 1000 2.6
13866 500 1.3
13700 100 0.3
85866 40 0.1
72333 80 0.2
77577 10 0.0
77212 1 0.0
38731 100.0
Revenue per unit
of product
4000000
3750000
800000
600000
400000
100000
40000
8000
5000
1000
9704000

Cumulative
Weighted value
Value weighted Category
percentage
percentage
937500000 32.5 32.5 A
800000000 27.8 60.3 A
360000000 12.5 72.8 A
320000000 11.1 11.1 B
320000000 11.1 22.2 B
100000000 3.5 C
40000000 1.4 C
2500000 0.1 C
1000000 0.0 C
800000 0.0 C
2881800000

Cumulative
frequency Category
percentage
51.6 A
90.4 A
5.2 B
7.7 B
9.0 B
9.3 B
9.4 B
9.6 B
9.6 B
9.6 B
 In stock
Sally’s inventory Item price ($/item)
(items/month)

Apples 150 0.1

Toothbrushes 100 4
Paper towels 200 1.5
Flowers 50 0.5
Squash 30 0.25
Magazines 200 1
Stools 100 15
Balloons 400 1

Criteria 1:
Revenue analysis

In stock
Sally’s inventory Item price ($/item)
(items/month)

Stools 100 15
Toothbrushes 100 4
Balloons 400 1
Paper towels 200 1.5
Magazines 200 1
Flowers 50 0.5
Apples 150 0.1
Squash 30 0.25
 Criteria 2:
Frequency of
input purchasing

Frequency of
Frequency
Sally’s inventory input purchasing
percentage
(turns/month)

Paper towels 630 38.46

Toothbrushes 580 35.41
Apples 240 14.65
Flowers 68 4.15
Balloons 52 3.17
Magazines 31 1.89
Squash 25 1.53
Stools 12 0.73
1638 100
Frequency of input
purchasing
(turns/month)
240
580
630
68
25
31
12
52

Cumulative
Weighted revenue
Revenue weighted
percentage
percentage
1500 52.68 52.68
400 14.05 66.73
400 14.05 80.77
300 10.54 10.54
200 7.02 17.56
25 0.88 18.44
15 0.53 18.96
7.5 0.26 19.23
2847.5 100
Cumulative frequency
Category
percentage

38.46 A
73.87 A
14.65 B
18.80 B
21.98 B
C
C
C
Category

A
A
A
B
B
B
B
B
 Jake’s inventory In stock (items/month)
Tumble dryer 200
Washing machine 36
Air-conditioner 40
Liquidizer 100
Laptop 51
Television 22
Water heater 52
Refrigerator 23
Coffee maker 125

Criteria 1: Revenue
analysis

Jake’s inventory In stock (items/month)

Tumble dryer 200

Television 22
Refrigerator 23
Air-conditioner 40
Washing machine 36
Laptop 51
Coffee maker 125
Water heater 52
Liquidizer 100
Criteria 2: Frequency of
sales

Frequency of sales
Jake’s inventory
(turns/month)
Laptop 2680
Air-conditioner 2100
Washing machine 1600
Liquidizer 1150
Coffee maker 960
Television 852
Refrigerator 720
Water heater 680
Tumble dryer 520
11262
 Frequency of sales
Item price (£/item)
(turns/month)
300 520
600 1600
550 2100
25 1150
250 2680
1300 852
100 680
1000 720
70 960

Item price (£/item) Revenue

300 60000
1300 28600
1000 23000
550 22000
600 21600
250 12750
70 8750
100 5200
25 2500
184400
 Cumulative frequency
Frequency percentage
percentage
23.80 23.80
18.65 42.44
14.21 56.65
10.21 66.86
8.52 75.39
7.57 7.57
6.39 13.96
6.04 20.00
4.62
100.00
Weighted revenue Cumulative weighted
percentage percentage

32.54 32.54
15.51 48.05
12.47 60.52
11.93 72.45
11.71 11.71
6.91 18.63
4.75 23.37
2.82
1.36
100
Category

A
A
A
A
A
B
B
B
C
Category

A
A
A
A
B
B
B
C
C