Various Methods for ABC Analysis of Inventory in MS Excel with Examples

Abstract

The technologies in IT industry play an important part in all areas of business and education in the contemporary world. It is hard to imagine most of the activities going smoothly without computers and software. The purpose of this paper is to present an idea for inventory ABC analysis. A sample dataset is used. A classification of inventory by empirical and graphical method in MS Excel is carried out. The application of ABC analysis in inventory management leads to a differentiation of inventories into three groups - the most essential, the least essential for the activities of the organization and all between them. Depending on the level of importance of the inventories, different approaches for their management are recommended. This leads to the need to optimize logistic costs. The proposed approach can be used in the educational processes for students and also for real practical applications in inventory management in logistics.