Instructions:

-Create a column titled Weighted Value and calculate the weighted value of each line item (Cost per unit X Annual Demand)

-In the next column, calculate % Weighted Value (Weighted value divided by Total Weighted Value)

-Sort data by % Weighted Value

-Assign primary ABC codes based on percentages. A common rule of thumb is A items equal 68% of the total, A+B items equal 95% of the total and C items equal the rest or 5% of the total. This is a rule of thumb only.

-Create a column for Volume %. Add the numbers in the Pick List Frequency column, then divide each item in the pick list frequency column by the total to get Volume %.

-Perform a two level sort. The first level is based on the ABC codes, the second is based on the Volume %.

-Assign secondary ABC codes based on percentages

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