Sort and Classify

Sort by Dollar Use

ABC analysis sorts items from highest annual dollar use to lowest.

highlighted = computed this step

Largest use

X has the largest annual dollar use: 60.

largest use=X\text{largest use}=X
ABC inventory tableThe chart recomputes sorted annual dollar use, cumulative shares, and classes.ABC inventory tabletotal annual use 150X 60Y 40W 30Z 20annual dollar use, sorted high to lowitemdemandcostusecum shareclassX106602/5AY202402/3AW3013013/15BZ54201CclassesA: X,YB: WC: Zthresholds are policy choices

Next uses

Y, W, and Z follow with uses 40, 30, and 20.

sorted order=X,Y,W,Z\text{sorted order}=X,Y,W,Z
ABC inventory tableThe chart recomputes sorted annual dollar use, cumulative shares, and classes.ABC inventory tabletotal annual use 150X 60Y 40W 30Z 20annual dollar use, sorted high to lowitemdemandcostusecum shareclassX106602/5AY202402/3AW3013013/15BZ54201CclassesA: X,YB: WC: Zthresholds are policy choices

Sorted order

The exact sorted order is X, Y, W, Z.

order=X,Y,W,Z\text{order}=X,Y,W,Z
ABC inventory tableThe chart recomputes sorted annual dollar use, cumulative shares, and classes.ABC inventory tabletotal annual use 150X 60Y 40W 30Z 20annual dollar use, sorted high to lowitemdemandcostusecum shareclassX106602/5AY202402/3AW3013013/15BZ54201CclassesA: X,YB: WC: Zthresholds are policy choices