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Pia: Ito na ituturo ko na kung paanon gamitin ang ABC Analysis Madali lang naman ito lalo na kung

gagamit kayo ng Excel. Excel ba ka naman! So ito na una kailangan I gather lahat ng inventory data

For example:

ITEM ANNUAL DEMAND UNIT COST VALUE


W1 3000 ₱50
W2 4000 ₱ 12
W3 1500 ₱ 18
W4 750 ₱ 16
W5 2200 ₱19

Pia: step 2 para naman makuha ang value Imultiply natin ang annual demand sa unit cost, step 3 naman
ay calculate the total inventory value kung saan kukuhanin lang natin ang sum ng lahat ng value parang
ganto:
ITEM ANNUAL DEMAND UNIT COST VALUE
W1 3000 ₱50 ₱ 150, 000
W2 4000 ₱ 12 ₱48, 800
W3 1500 ₱ 18 ₱ 27, 000
W4 750 ₱ 16 ₱ 12, 000
W5 2200 ₱19 ₱ 41,800
₱ 278, 800

Pia: step 4 naman ay calculate the percentage of value each inventory items offers para makuha yon
we need to divide the value sa total inventory value and the x100%
ITEM ANNUAL DEMAND UNIT COST VALUE PERCENTAGE
W1 3000 ₱50 ₱ 150, 000 53.80%
W2 4000 ₱ 12 ₱48, 800 17.22%
W3 1500 ₱ 18 ₱ 27, 000 9.68%
W4 750 ₱ 16 ₱ 12, 000 4.30%
W5 2200 ₱19 ₱ 41,800 14.99%
₱ 278, 800

Pia: Step 5 naman is classify your ABC inventory kailangan naka desending order or from most valuable
to least valuable at pagnatapos na you can now break up your inventory items into classifications. Ito
lang naman ang general guidelines to set the parameters of each class

 Class A: Items that account for approximately 70% to 80% of inventory value
 Class B: Items that account for approximately 15% to 25% of inventory value
 Class C: Items that account for approximately 5% of inventory value

Based on your parameters, pwede na tayo mag proceed classifying our inventory. With larger data
sets you need to use the sum function to add and multiple cells to get the right percentage
amount. For instance you want to classify all items that add up to 70% 80% assuming you,ve
ordered your table in desending order

ITEM ANNUAL DEMAND UNIT COST VALUE PERCENTAGE


W1 3000 ₱50 ₱ 150, 000 53.80%
W2 4000 ₱ 12 ₱48, 800 17.22% 71.02%
W3 1500 ₱ 18 ₱ 27, 000 9.68%
W4 750 ₱ 16 ₱ 12, 000 4.30% 24.68%
W5 2200 ₱19 ₱ 41,800 14.99% 4.30%
₱ 278, 800

Pia: last step is to schedule follow up activities like cycle counts. And that’s it diba madali lang
matutunan ang pag gamit ng ABC analysis.

Summer: Oo nga ang galling ganun lang pala yun! Eh ano naman ung Cycle counting?

Pia: Cycle counting it is counting small amount of inventory in warehouse each day, with intent of
counting the entire inventory over a period of time.

Summer: ano naman ang advantages ng pagamit nito?

Pia: ang advantage nito ay we don’t need to shutdown the operations kasi usually and commonly being
practiced in our industry they shutdown the operations for a month in order to conduct a inventory
while in cycle counting no need to shutdown is required, operation will continue to go on while at the
same time doing the cycle counting.

Pia:

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