ABC Inventory Analysis for Electronics
Translated by
ScribdTranslationsABC Inventory Analysis for Electronics
Translated by
ScribdTranslationsINVENTORY MANAGEMENT
EXERCISE Case COMPUTERS AND ACCESSORIES S.A.
(ABC Method of Inventory Analysis)
CASE COMPUTERS AND ACCESSORIES S.A. (ABC Method of Analysis)
inventories
Computers and Accessories S.A., manufacturer of electronic components, has organized
in one of its warehouses, 10 items from an inventory based on the annual value assessed
in monetary units. The following table shows the items and their consumption
annual, the cost per unit, the amount in monetary units, and the percentage that
represents each one in the total.
Cost per Amount of
Code Existence Percentage
unit valor del
inventory
102 1.000 11.70% 0.54 540.00
105 1,000 11.70% 0.08 80.00
108 350 4.09% 0.26 91.00
113 100 1.17% 0.05 5.00
115 500 5.85% 0.93 465.00
125 600 7.02% 0.09 54.00
127 1.550 18.13% 0.10 155,00
137 1.200 14.04% 0.01 12.00
140 2,000 23,39% 0,01 20.00
150 250 2.92% 0.01 2.50
8.550 1.424,50
It is requested:
Classify the items using the ABC method (Activity Based Costing),
using the monetary value that the item represents over the total value of the
inventory.
1
INVENTORY MANAGEMENT
Solution
ABC Method of inventory analysis:
1 2 3 4 5 6 7 8 9
% of
Cost Amount of
total Accumulate
Código Existencia Porcentaje % by value of Class
value tion
Accumulated unit Inventory
Inventory %
102 1,000 11.70% 0.54 540,00 37.9% A
17.55% 70
115 500 5.85% 0.93 460,00 32.2% A
127 1.550 18.13% 0.10 155.00 10.88% B
108 350 4.09% 33,92% 0.26 91.00 6.38% 23% B
105 1000 11.70% 0.08 80.00 5.61% B
125 600 7.02% 0.09 54.00 3.79% C
140 2000 23.39% 0.01 20,00 1.40% C
137 1200 14.04% 48.54% 0.01 12.00 0.84% 7% C
113 100 1.17% 0.05 5.00 0.35% C
150 250 2.92% 0.01 2.50 0.17% C
8.550 1.424,50
Como Calcular las Columnas
Column 1: Inventory item identification code.
Column 2: Quantity in stock of each item.
Column 3: Percentage (%) that each item represents of the total items found
in the warehouse. (Column 2 / 8.550 x 100)
Column 4: Accumulated percentage (%) that arises from grouping items by categories.
Column 5: Cost per unit of each item.
Column 6: Monetary amount of the stock value of each of the different classes of
articles.
Column 7: Percentage (%) of the value of each class of article in relation to the amount of the
total inventory. (Column 6 / 1,424.5 x 100).
Column 8: Accumulated percentage (%) of inventory values.
The ABC analysis allows the company to select items for applying the control method.
that I consider more appropriate. Thus, the monitoring of the evolution of the inventory in items A
it will be stricter. They may need to be in a safer area and the accuracy of their records must
verify more often or if possible continuously. Instead, for items B and about
All C attention will be much more relaxed and the time devoted to its control will be minimal.