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ABC Analysis and Gini Index Calculation

The company wishes to analyze its products based on their contribution to revenue in order to optimize its supply methods. The ABC analysis has been carried out, including the calculation of annual revenue, the ranking of items, and the calculation of the Gini index, which stands at 0.7959, indicating sufficient selectivity. The ABC ranking of products has been established based on the results obtained.

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6 views4 pages

ABC Analysis and Gini Index Calculation

The company wishes to analyze its products based on their contribution to revenue in order to optimize its supply methods. The ABC analysis has been carried out, including the calculation of annual revenue, the ranking of items, and the calculation of the Gini index, which stands at 0.7959, indicating sufficient selectivity. The ABC ranking of products has been established based on the results obtained.

Translated by

ScribdTranslations
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ABC Method

Exercise 1
In this company, we want to determine which products contribute the most to
CA.
We also want to verify that this criterion is significant for organizing, for example, the
choice of procurement methods.

You will perform the ABC analysis of these items, plot the curve, and calculate the Gini index.
If necessary, you will determine families A, B, and C.

Corrected

1) calculation of annual revenue


Ranking according to the criterion

3) Combine the articles and the criterion


4) Calculate the cumulative percentages

5) calculate the Gini index:

Indice de Gini = 0,7959


The index is above 0.6, therefore the criterion is sufficiently selective for the ranking to be
achievable

6) establish the ABC ranking

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