Multiproduct Systems Example 5.10,Performance of 20 Stock Items Selected at Random Part Number Price($) Yearly Demand Dollar Volume($) 70779 24.99 334 8346.66 R077 12.80 14 179.20 4J65E 7.75 24 186.00 45000 7.70 675 5197.50 7878 6.22 66 410.52 4040 6.10 220 1342.00 2M993 4.45 612 2723.40 93939 4.05 12 48.60 16113 3.89 89 346.21 W76 3.10 110 341.00 3K62 2.85 43 122.55 5497J 2.25 260 585.00 88450 1.50 21 31.50 JJ335 1.32 786 1037.52 39SS5 1.23 52 63.96 6193L 0.85 148 125.80 P001 0.77 388 298.76 TTR77 0.77 690 531.30 334Y 0.68 77 52.36 8ST4 0.25 56 14.00
Multiproduct Systems Example 5.10, Performance of 20 Stock Items Selected at Random Part Number Price ($) Yearly Demand Dollar Volume ($) 70779 24.99 334 8346.66 R077 12.80 14 179.20 4J65E 7.75 24 186.00 45000 7.70 675 5197.50 7878 6.22 66 410.52 4040 6.10 220 1342.00 2M993 4.45 612 2723.40 93939 4.05 12 48.60 16113 3.89 89 346.21 W76 3.10 110 341.00 3K62 2.85 43 122.55 5497J 2.25 260 585.00 88450 1.50 21 31.50 JJ335 1.32 786 1037.52 39SS5 1.23 52 63.96 6193L 0.85 148 125.80 P001 0.77 388 298.76 TTR77 0.77 690 531.30 334Y 0.68 77 52.36 8ST4 0.25 56 14.00
Multiproduct Systems ©ABC Analysis Borrow a concept from economics:Pareto effect The economist Vilfredo Pareto(1848~1923),studying the distribution of wealth in the 19th century,noted that a large portion of wealth was owned by a small segment of the population Pareto effect in inventory control:a large portion of the total dollar volume of sales is often accounted for by a small number of inventory items
Multiproduct Systems ABC Analysis • Borrow a concept from economics: Pareto effect The economist Vilfredo Pareto (1848 ～1923) , studying the distribution of wealth in the 19th century, noted that a large portion of wealth was owned by a small segment of the population • Pareto effect in inventory control: a large portion of the total dollar volume of sales is often accounted for by a small number of inventory items