ABC Classification Tool
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Quick Guide to Use ABC Classification Calculator
- Select your preferred currency from the dropdown menu.
- Enter the units sold per year and the unit price for each of the items (A to F).
- Click the “Calculate” button to view the consumption and units sold percentages.
- Reset the calculator using the “Reset” button for new calculations.
- If you want to check only for two to three items, then also you can use this calculator. If you leave items also, it gives proper results. But you need to fill input data at least for 2 items.
Formula
For Item A, Annual consumption value in % = [(Number of Units Sold per Year x Unit Price)/Total Annual Consumption Value of all Items] x 100
Where the total annual consumption value is the sum of the annual consumption value of all the items.
For Item A, Annual Units Sold in % = (Number of Units Sold per Year / Total number of Units sold)
Where the total number of Units sold is the sum of all items sold in that year.
Used the same formula for Item B, Item C, Item D, Item E, and Item F.
Input Field Details
- Annual Units Sold: Number of units sold in a year.
- Unit Price: The price of one unit of the item.
What is ABC Analysis? and How This Calculator is Useful for Classification?
- ABC analysis is a management approach to categorize items based on their importance.
- This calculator helps in ABC analysis by providing consumption and units sold percentages for each item.
- Items with higher consumption percentages are considered more critical (e.g., “A” items), aiding in classification.
Who Can Use This Calculator
- Business owners, managers, and analysts involved in inventory management.
- Individuals analyze the sales and consumption patterns of multiple items.
Industries That Can Use This Calculator
- Retail: Analyzing sales of various products.
- Manufacturing: Managing inventory of raw materials and finished goods.
- E-commerce: Understanding the performance of different products.
- Any industry dealing with multiple items and inventory.
Benefits of Using This Calculator
- Efficient ABC analysis: Quickly identify and classify items based on consumption.
- Strategic decision-making: Helps in making informed decisions regarding inventory.
- Resource optimization: Allocate resources based on the importance of items.
FAQs
Can I use this calculator for any currency?
Yes, you can select your preferred currency from the dropdown menu.