ABC Analysis for ELECTRO W Inventory
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ScribdTranslationsABC Analysis for ELECTRO W Inventory
Translated by
ScribdTranslationsPerform a classification of products according to the ABC analysis.
Next we will see the initial information of the company ELECTRO W. This company is in charge of
distribute y to market everything
type of appliances and household items. The
The study was conducted in the warehouse that distributes appliances for cash. An ABC analysis will be conducted.
about the total cost per item that each represents over the total inventory cost.
TABLE 1. INITIAL INVENTORY INFORMATION
ARTICLE ITEM ANNUAL CONSUMPTION (units) UNIT COST ($)
FRIDGE CCE-287 100 $ 680.000,00
REFO CCN-303 20 $ 1.180.000,00
FRIDGE CCN-420 100 $ 630.000,00
FRIDGE CCN-215 60 $ 860.000,00
FRIDGE MAO21-IX 50 $ 990.000,00
FRIDGE RML-12 30 $ 1.020.000,00
WASHER LCD-631 200 $ 460.000,00
WASHER LMA-11832 50 $ 860.000,00
WASHING MACHINELMA-6512 100 $ 780.000,00
WASHING MACHINECRF-4516 20 1,040,000.00
FREEZERS IVDC-12 20 $ 902.000,00
FREEZERS IVD-516 15 $ 1.314.000,00
FREEZERS ERD-521 15 $ 2.120.000,00
STOVES TX-1 40 $ 540.000,00
STOVES TX-2 80 $ 380.000,00
STOVES TX-5 30 $ 612.000,00
TELEVISIONS BX-3 200 $870,000.00
TELEVISIONS BX-4 300 $ 1.100.000,00
TELEVISIONS Kdl-52 200 $ 3.400.000,00
TELEVISIONS Kdl-46 250 $2,300,000.00
TELEVISIONS C350 300 $ 700.000,00
TELEVISIONS Ex407 200 $1,650,000.00
TABLE 2
PARTICIPATION
VALUATION CONSUMPTION % OF CONSUMPTION
ITEM FROM EACH ITEM
($) (VALUATION)
(of the total)
CCE-287 4.55 $ 68.000.000,00 2.30
CCN-303 4.55 $ 23.600.000,00 0.80
CCN-420 4.55 $ 63.000.000,00 2.13
CCN-215 4.55 $ 51.600.000,00 1.74
MAO21-IX 4.55 $ 49.500.000,00 1.67
RML-12 4.55 $ 30.600.000,00 1.03
LCD-631 4.55 $ 92.000.000,00 3.11
LMA-11832 4.55 $ 43.000.000,00 1.45
LMA-6512 4.55 $78,000,000.00 2.64
CRF-4516 4.55 $ 20.800.000,00 0.70
IVDC-12 4.55 $ 18.040.000,00 0.61
IVD-516 4,55 $ 19.710.000,00 0.67
ERD-521 4.55 $ 31.800.000,00 1.07
TX-1 4.55 $ 21.600.000,00 0.73
TX-2 4.55 $ 30.400.000,00 1.03
TX-5 4.55 $ 18.360.000,00 0.62
BX-3 4.55 $174,000,000.00 5.88
BX-4 4.55 $ 330.000.000,00 11,15
Kdl-52 4.55 $680,000,000.00 22.98
Kdl-46 4.55 $ 575.000.000,00 19.43
C350 4.55 $ 210.000.000,00 7,10
Ex407 4.55 $ 330.000.000,00 11.15
TOTALS 100.00 2,959,010,000.00 100.00
TABLE 3
%
PARTICIPATION % OF CONSUMPTION
% OF PARTICIPATION % OF VALUATION
ITEM CLASSIFICATION
OF EACH ITEM VALUATION Accumulated Accumulated
(of the total)
Kdl-52 4.55 22.98 4.55 22.98 A
Kdl-46 4.55 19.43 9.09 42,41 A
BX-4 4.55 11.15 13.64 53,57 A
Ex407 4.55 11.15 18.18 64.72 A
C350 4.55 7,10 22,73 71,81 A
BX-3 4.55 5.88 27,27 77.69 B
LCD-631 4.55 3.11 31.82 80,80 B
LMA-6512 4.55 2.64 36.36 83.44 B
CCE-287 4.55 2.30 40.91 85.74 B
CCN-420 4.55 2.13 45.45 87.87 B
CCN-215 4.55 1.74 50.00 89.61 B
MAO21-IX 4,55 1.67 54,55 91,28 B
LMA-11832 4.55 1.45 59.09 92,74 C
ERD-521 4.55 1.07 63,64 93,81 C
RML-12 4.55 1.03 68.18 94,85 C
TX-2 4,55 1.03 72,73 95.87 C
CCN-303 4.55 0.80 77.27 96.67 C
TX-1 4.55 0.73 81,82 97.40 C
CRF-4516 4.55 0.70 86.36 98.10 C
IVD-516 4.55 0.67 90,91 98.77 C
TX-5 4.55 0.62 95.45 99.39 C
IVDC-12 4.55 0.61 100.00 100.00 C
Cyclic Count
UNITS A
ITEM QUANTITY CLASSIFICATION Cyclic Counting
COUNT PER DAY
Kdl-52 200
Kdl-46 250
BX-4
Ex407
300
200
A 30
C350 300
TOTAL 1250 42
BX-3 200
LCD-631 200
LMA-6512 100
CCE-287
CCN-420
100
100
B 60
CCN-215 60
MAO21-IX 50
TOTAL 810 14
LMA-11832 50
ERD-521 15
RML-12 30
TX-2 80
C
CCN-303 20 90
TX-1 40
CRF-4516 20
IVD-516 15
TX-5 30
IVDC-12 20
TOTAL 320 4
ABC Classification Chart 1
As we could see throughout this analysis, the costs of the items are quite high, which
it ensures that high costs are managed inventories throughout the year. With this information
supplied by the marketer ELECTRO W, we see that out of the 22 items, 5 are under
a type A classification considering a 20-70 ratio, with approximately 20%
of the total articles is responsible for 70% of the total costs. The following 7 articles are
responsible for 30% of the total value below, these being of type B, and finally we have the articles
of type C which represent 10% of the total inventory value, without this meaning
that are not necessary for the company. Another type of optional ABC analysis or classification is
You can classify the first 7 articles as type A so that the count is higher.
rigorous, as it can be observe in the graph where we see that approximately
30% of the items would be responsible for 80% of the total inventory costs. being this
a system recommended classification for this type of distributors that handle large
amount of unit costs per items, becoming expensive a loss of some
unit in inventory.
Taking into account the classification made for each of the proposed items, it was carried out the
determination of the appropriate cyclic count for this classification. We see then that for the
Type A articles should be counted 42 units daily, type B articles should be counted 14 units.
daily and finally for type C, the count must be 4 units daily. It is important to highlight that it should be
count in order of each item's importance. Next, we will see the graphs that show the classification
ABC proposal for the company's inventory.