Name: TAGUN, James Gilson M.

Date: June 14, 2024

Year/Course: 3rd Year – BSIE Instructor: Ms. Vanessa Ici

Operations Management
Laboratory Activity

ABC ANALYSIS CLASSIFY THE ITEMS:

ITE Annual Demand (units) Cost per Unit ($) Annual Usage Value ($)
M
1 100 50 5000
2 200 30 6000
3 150 20 3000
4 300 10 3000
5 400 5 2000
 AUV = 19,000
PERCENTAGE OF TOTAL USAGE VALUE:
Item 1:
 (5,000 /19,000) (100) = 26. 32%
Item 2:
 (6,000/19,000) (100) = 31. 58%
Item 3:
 (3,000/19,000) (100) = 15. 79%
Item 4:
 (3,000/19,000) (100) = 15. 79%
Item 5:
 (2,000/19,000) (100) = 10. 53%

SORT (Descending Order) :

Item 2: $6,000 (31.58%)
Item 1: $5,000 (26.32%)
Item 3: $3,000 (15.79%)
Item 4: $3,000 (15.79%)
Item 5: $2,000 (10.53%)
FINAL TABLE WITH ABC CLASSIFICATIONS:
ITE Annual Cost per Annual Usage % of Total Category/
M Demand (units) Unit ($) Value ($) Usage Value ABC
Classification
2 200 30 6000 31.58% A
1 100 50 5000 26.32% A
3 150 20 3000 15.79% B
4 300 10 3000 15.79% B
5 400 5 2000 10.53% C