Scribd
Upload
79 views

L5 ABC Classification Exercise

1. This document contains data on 20 stock keeping units (SKUs) including item number, unit price, annual unit volume, annual revenue, cumulative revenue, and ABC classification. 2. The ABC classification assigns items to categories A, B, or C based on their cumulative percentage of total revenue, with A items accounting for the highest percentage. 3. Items are classified as A if their cumulative revenue is 79% or less of total revenue, B if their cumulative revenue is between 80-94% of total revenue, and C if their cumulative revenue is 95-100% of total revenue.

Uploaded by

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

L5 ABC Classification Exercise

1. This document contains data on 20 stock keeping units (SKUs) including item number, unit price, annual unit volume, annual revenue, cumulative revenue, and ABC classification. 2. The ABC classification assigns items to categories A, B, or C based on their cumulative percentage of total revenue, with A items accounting for the highest percentage. 3. Items are classified as A if their cumulative revenue is 79% or less of total revenue, B if their cumulative revenue is between 80-94% of total revenue, and C if their cumulative revenue is 95-100% of total revenue.

Uploaded by

Rohit Wadhwani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Lesson 5 ABC classification exercise.

xls
% of
Unit Annual Annual Cumulative Cumulative
Item Price Unit Volume Revenue Revenue Revenue
$
1 5 10
2 10 200
3 50 100
4 8 10
5 10 80
6 40 20
7 20 400
8 100 50
9 12 1000
10 8 2000
11 5 1000
12 10 300
13 50 400
14 8 10000
15 10 4000
16 40 80
17 20 2500
18 100 60
19 12 7000
20 8 1500
Lesson 5 ABC classification exercise.xls
% of
Unit Annual Annual Cumulative Cumulative
Item Price Unit Volume Revenue Revenue Revenue ABC Classification
$
19 12 7000 84000 84000 24% A
14 8 10000 80000 164000 46% A
17 20 2500 50000 214000 61% A
15 10 4000 40000 254000 72% A
13 50 400 20000 274000 78% A
10 8 2000 16000 290000 82% B
9 12 1000 12000 302000 86% B
20 8 1500 12000 314000 89% B
7 20 400 8000 322000 91% B
18 100 60 6000 328000 93% B
3 50 100 5000 333000 94% B
8 100 50 5000 338000 96% C
11 5 1000 5000 343000 97% C
16 40 80 3200 346200 98% C
12 10 300 3000 349200 99% C
2 10 200 2000 351200 100% C
5 10 80 800 352000 100% C
6 40 20 800 352800 100% C
4 8 10 80 352880 100% C
1 5 10 50 352930 100% C

Note:
1 - 79% = A

80 - 94% = B

95 - 100% = C

A category is 25% of total 20 SKUs. B category is 30% of total SKUs and C category is 45% of
total SKUs.

You might also like