9. Typical examples

9.1 Application of ABC analysis

Its principle is to classify stock items according to their turnover in value. In most cases, this means that around 20% of items will represent around 80% of the value. Hence the division of stock into three ABC classes, to which more or less elaborate management methods can be applied according to their importance.

If we define turnover in value terms as the quantities of an item issued during the reference period, multiplied by its cost, the process is as follows:

• 1. Sort items by decreasing rotation value;

• 2. Cumulative value ;

• 3. Calculate the percentages according to the number of items and their cumulative...