[PDF] ANALYSE ABC

What is an example of ABC analysis?

For example, this method enables you to determine which customers contribute the most to your total revenue or which purchased parts incur the highest production costs. This information can then serve as a basis for further business planning. What is ABC analysis? Definition and background What is ABC analysis? Definition and background

What are the disadvantages of the ABC analysis method?

One of the disadvantage of the ABC Analysis method is that it does not take into account the volatility of sales or consumption. It is then necessary to use the ABC XYZ classification.

What is the ABC method?

When applied to the business sector, this may mean that 20% of customers generate 80% of the revenue. However, it can also mean that 20% of goods take up 80% of the storage space. The ABC method helps to determine which goods, services and customers are more profitable and resource efficient and which are uneconomical and cost intensive.

Can an ABC analysis produce a clear limit?

All that matters is that the individual items’ percentage shares of the total value differ significantly so that you can define a clear limit. Otherwise, an ABC analysis will not be able to produce any meaningful results.