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Tutorial 8 - Solutions (Chapter 7 - Production Planning)
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Operations Management, Supply Chain Management
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UniversitätsprofessorDr.-Ing. Bernd Hellingrath
Lehrstuhl für Wirtschaftsinformatik und Logistik
Leonardo-Campus 3
48149 Münster
Tel. +49 251 83-38000
Fax +49 251 83-38009
Hellingrath@ercis.de
Tutorial Operations Management
Chapter 7 – Production Planning
Solutions
Please note: Round off to two digits, if not indicated otherwise.
Exercise 1: ABC Analysis
The RoboTec Inc. aims at reducing capital commitment costs in their warehouses. Therefore,
they need to check if procurement and storage of certain materials can be improved. The ABC
analysis shall be used to gain helpful information.
Material Required Unit Price
Material-ID
[piece/year] [euro]
MB 01 592 3.08
MB 02 425 11.27
MB 03 1723 13.43
MB 04 1053 3.14
MB 05 1887 1.92
MB 06 815 2.73
MB 07 1178 12.89
MB 08 472 45.79
MB 09 1630 6.38
MB 10 1761 6.00
a) Conduct an ABC analysis based on the given data. Please use the following class limits to
calculate the cumulated usage values: 0% ≤ A < 75%, 75% ≤ B < 90%, 90% ≤ C ≤ 100%.
, 2
Determination of the annual consumption and the rank
Material Unit Annual
Material Required Price Consumption Rank
ID [pieces] [€] [€]
MB 01 592 3.08 1823.36 10
MB 02 425 11.27 4789.75 6
MB 03 1723 13.43 23139.89 1
MB 04 1053 3.14 3306.42 8
MB 05 1887 1.92 3623.04 7
MB 06 815 2.73 2224.95 9
MB 07 1178 12.89 15184.42 3
MB 08 472 45.79 21612.88 2
MB 09 1630 6.38 10399.40 5
MB 10 1761 6 10566.00 4
Classification based on the cumulative usage value
Annual Usage Cumulative Class
Material Consumption Value Usage Value
ID [€] [%] [%]
MB 03 23139.89 23.94% 23.94% A
MB 08 21612.88 22.36% 46.30% A
MB 07 15184.42 15.71% 62.01% A
MB 10 10566.00 10.93% 72.94% A
MB 09 10399.40 10.76% 83.70% B
MB 02 4789.75 4.95% 88.65% B
MB 05 3623.04 3.75% 92.40% C
MB 04 3306.42 3.42% 95.82% C
MB 06 2224.95 2.30% 98.12% C
MB 01 1823.36 1.89% 100.01% C
Total 96670.11
Determination of the cumulative % of total number of items
Material Required % of Total Cumulative % of
Material [pieces] Number of Items Total Number of Items
ID [%] [%]
MB 03 1723 14.94% 14.94%
MB 08 472 4.09% 19.03%
MB 07 1178 10.21% 29.24%
MB 10 1761 15.27% 44.50%
MB 09 1630 14.13% 58.63%
MB 02 425 3.68% 62.32%
MB 05 1887 16.36% 78.68%
MB 04 1053 9.13% 87.80%
MB 06 815 7.06% 94.87%
MB 01 592 5.13% 100.00%
Total 11536
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