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3019 Assignment 2 - ABC CLASSIFICATION

The document analyzes supplier data to classify suppliers into A, B, and C categories based on annual spending. The top suppliers are Murata, Fairchild Semiconductor, and Volex which are classified as A. Texas Instrument, Seiko, and Emerson Network Power are classified as B. The remaining suppliers are classified as C.

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80 views2 pages

3019 Assignment 2 - ABC CLASSIFICATION

The document analyzes supplier data to classify suppliers into A, B, and C categories based on annual spending. The top suppliers are Murata, Fairchild Semiconductor, and Volex which are classified as A. Texas Instrument, Seiko, and Emerson Network Power are classified as B. The remaining suppliers are classified as C.

Uploaded by

lonelone
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Logistics

PRCH-3019

Conducting an ABC Analysis


Analyze the following data to produce an ABC classification based on annual dollar
spend:
 80% - A
 15% - B
 5% - C
Part A:
Supplier Name Annual Dollar Spend
Texas Instrument $131,890.00
Murata 561,270.00
3M 3,444.00
Emerson Network Power 84,930.00
Fairchild Semiconductor 427,490.00
Celestica Corporation 5,000.00
Mabuchi Motors 6,344.00
Volex 190,562.00
Tyco Electronics 19,672.00
Pegatron 34,000.00
Seiko 100,112.00
Sharp Electronics 3,022.00

Annual Dollar
Supplier Name Classification
Spend
Murata $561,270 A
Fairchild Semiconductor $427,490 A
Volex $190,562 A
Texas Instrument $131,890 B
Seiko $100,112 B
Emerson Network Power $84,930 B
Pegatron $34,000 C
Tyco Electronics $19,672 C
Mabuchi Motors $6,344 C
Celestica Corporation $5,000 C
3M $3,444 C
Sharp Electronics $3,022 C
Logistics
PRCH-3019

Part B:

Part Unit Unit Annual


Number Usage Cost Dollar Usage
2 600 $40.00 $24,000
5 100 $60.00 $6,000
8 1,500 $2.00 $3,000
1 1,100 $2.00 $2,200
4 1,300 $1.00 $1,300
10 500 $1.00 $500
3 100 $4.00 $400
6 10 $25.00 $250
7 100 $2.00 $200
9 200 $1.00 $200

Cumulative
Annual Dollar Cumulative
Part Number Percentage Classification
Usage Dollar Usage
Usage
2 $24,000 $24,000 63.07% A
5 $6,000 $30,000 78.84% A (B)
8 $3,000 $33,000 86.73% B
1 $2,200 $35,200 92.51% B (C)
4 $1,300 $36,500 95.93% B (C)
10 $500 $37,000 97.24% C
3 $400 $37,400 98.29% C
6 $250 $37,650 98.95% C
7 $200 $37,850 99.47% C
9 $200 $38,050 100.00% C

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