ABC analysis: example of implementation
Posted: Mon Jan 06, 2025 5:30 am
Let's calculate ABC analysis using the example of a fictitious office stationery store. Let's assume that we are considering an assortment with a total revenue of 65 million rubles.
We enter data into the table: units of goods with revenue for a specific period of time;
Notepads 13 million rubles
Paper 13 million rubles
Handles 11.7 million rubles
Markers 9.75 million rubles
Staplers 7.8 million rubles
Folders 5.85 million rubles
Stickers 2.6 million rubles
Files 1.3 million rubles
Now you need to calculate the percentage of each item bolivia whatsapp phone number from the total revenue using the formula: divide the revenue for the product by the total revenue and multiply by 100. We get the values: notepads and paper 20% each, pens 18%, markers 15%, staplers 12%, folders 9%, stickers 4%, files 2%;
Important! The data in the table must be sorted so that the percentage values are indicated from largest to smallest.
The next step is to calculate the accumulated share. For the first line, we repeat the individual share - 20%. That is, the share of revenue for notebooks becomes the accumulated share. For the next item, paper, the share is added to the value of the previous line - 20% (accumulated share of the product notebooks) + 20% (share of revenue for the product paper) = 40%. We continue adding to the sum until we get 100%.
Based on the data obtained, we assign a group. Accumulated share up to 80% - group A, up to 95% - group B, the remaining 5% - group C.
ABC table
This concludes the ABC analysis. The table shows that in the fictional office supply store, notepads, paper, pens, and markers make up group A, while sticky notes and files are located in group C.
Advantages and Disadvantages of the ABC Method
This type of research allows you to quickly evaluate sales and provides a clear result in a simple format, which significantly simplifies the process of optimizing the range. Here are the main advantages of this method:
We enter data into the table: units of goods with revenue for a specific period of time;
Notepads 13 million rubles
Paper 13 million rubles
Handles 11.7 million rubles
Markers 9.75 million rubles
Staplers 7.8 million rubles
Folders 5.85 million rubles
Stickers 2.6 million rubles
Files 1.3 million rubles
Now you need to calculate the percentage of each item bolivia whatsapp phone number from the total revenue using the formula: divide the revenue for the product by the total revenue and multiply by 100. We get the values: notepads and paper 20% each, pens 18%, markers 15%, staplers 12%, folders 9%, stickers 4%, files 2%;
Important! The data in the table must be sorted so that the percentage values are indicated from largest to smallest.
The next step is to calculate the accumulated share. For the first line, we repeat the individual share - 20%. That is, the share of revenue for notebooks becomes the accumulated share. For the next item, paper, the share is added to the value of the previous line - 20% (accumulated share of the product notebooks) + 20% (share of revenue for the product paper) = 40%. We continue adding to the sum until we get 100%.
Based on the data obtained, we assign a group. Accumulated share up to 80% - group A, up to 95% - group B, the remaining 5% - group C.
ABC table
This concludes the ABC analysis. The table shows that in the fictional office supply store, notepads, paper, pens, and markers make up group A, while sticky notes and files are located in group C.
Advantages and Disadvantages of the ABC Method
This type of research allows you to quickly evaluate sales and provides a clear result in a simple format, which significantly simplifies the process of optimizing the range. Here are the main advantages of this method: