Calculate an example where an ABC analysis is performed based on: a) Sales(turno

Question

Calculate an example where an ABC analysis is performed based on:

a) Sales(turnover*value) and contribution margin.

b) Sales of finished goods and contribution margins are common criteria for ABC analysis.

Give two examples of other factors that ABC analysis is often used on.

c) Products F, G, H, M and D are subject to demand. If product F is sold, then G also sells. Does it change the outcome of the example?

Exercise A.1ry erform an ABC analysis of the items in the table below ltem Turnover (pieces/year) Value/unit Contribution margin % Picking events/year 100 15 50 1000 25 115 1000 450 400 190 550 75 650 420 1100 100 30 50 59 0.50 0.50 70 65 85 70 75 2000 100% 3000 65 70 80 75 45 G 5000 1500 2000 500 2000 43 2000 1500 2000 70 75 80 1.50

Explanation / Answer

58870

ABC ANALYSIS (A) (B) (C=A*B) (D) (E=C*D) (F=C/TOTAL SALES*100) ITEM TURNOVER VALUE SALES CONTRIBUTION MARGIN % CONTRIBUTION % Sales ABC Analysis L 300 43 12900 65 8385 21.91 A J 500 19 9500 75 7125 16.14 A H 1500 6 9000 70 6300 15.29 B G 5000 1 5000 65 3250     8.49 B K 2000 2 4000 45 1800     6.79 C O 2000 2 4000 80 3200     6.79 C C 50 65 3250 85 2763     5.52 C N 1500 1.5 2250 75 1688     3.82 C I 2000 1 2000 80 1600     3.40 C M 2000 1 2000 70 1400     3.40 C B 30 59 1770 65 1151     3.01 C F 3000 0.5 1500 50 750     2.55 C D 2000 0.5 1000 70 700     1.70 C E 100 5 500 75 375     0.85 C A 100 2 200 70 140     0.34 C Total Sales

58870

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