The final step is to allocate the relevant ABC coding to each item.
Remember:
- Category A items – 10% of items by volume account for 70% of value;
- Category B items – 20% of items by volume accounts for 80% of value; and
- Category C items – 70% of items by volume accounts for 10% of value.
| Item No. | Description | Annual Usage | Unit Cost | Annual Usage Cost | % of Annual Usage Cost | Cum % of Annual Usage | ABC Category |
| 1001 | Moulding A | 20,000 | £1.42 | £28,400.00 | 50.36% | 50.36% | A |
| 1003 | Moulding C | 5,000 | £2.65 | £13,250.00 | 23.50% | 73.86% | A |
| 1004 | Pressing A | 20,000 | £0.32 | £6,400.00 | 11.35% | 85.21% | B |
| 1002 | Moulding B | 10,000 | £0.51 | £5,100.00 | 9.04% | 94.26% | B |
| 1005 | Pressing B | 10,000 | £0.12 | £1,200.00 | 2.13% | 96.38% | C |
| 1006 | Pressing C | 5,000 | £0.22 | £1,100.00 | 1.95% | 98.33% | C |
| 1007 | Bolt A | 24,333 | £0.01 | £243.33 | 0.43% | 98.77% | C |
| 1009 | Nut A | 24,096 | £0.01 | £240.96 | 0.41% | 99.19% | C |
| 1008 | Bolt B | 23,007 | £0.01 | £230.07 | 0.43% | 99.60% | C |
| 1010 | Nut B | 22,455 | £0.01 | £224.55 | 0.40% | 100% | C |
| £56,388.91 |
Table 14: ABC Category