ABC analysis of medicines in pharmacy store

1. ABC Analysis
Submitted To :
Dr. KANCHAN VOHRA
Assistant Professor
Submitted By :
Mohd. Rafi Bhat

2. ABC analysis of given list of medications-
Vit.B complex
Prednisolone tablet
Antacid
Cephalosporin
Beta blocker ( propanolol)
Metformin
Anti TB (DOTS)
Anti RA (Methotrexate)
Antibiotic (ciprofloxacin)
Antifungal( Cotrimoxazole)

3. ABC Analysis
• ABC analysis is an inventory categorization
method which consists in dividing items into
three cotegories:
• A Items : These Items are seen to be of high
Rupee consumption volume. "A" items usually
include 10-20% of all inventory items, and
account for 50-60% of the total Rupee
consumption volume.

4. B Items : "B" items are those that are 30-40% of
all inventory items, and account for 30-40% of
the total Rupee consumption volume of the
inventory. These are important, but not critical,
and don't pose sourcing difficulties.
C Items : "C" items account for 40-50% of all
inventory items, but only 5-10% of the total
• Rupee consumption volume

5. • The annual consumption value is calculated
with the formula:-
• (Annual demand) x ( Item cost per unit)

6. Calculate the total amount spending per year
Item name Unit cost Annual demand Total cost per year
1.Vit.B complex 5 50,000 2,50,000
2.Prednisolone tablet 6 40,000 2,40,000
3.Antacid 4 30,000 1,20,000
4.Cephalosporin 7 3,500 24,500
5.Beta blocker ( propanolol) 3 20,000 60,000
6.Metformin 4 41,000 1,64,000
7.Anti TB (DOTS) 8 2,500 20,000
8.Anti RA (Methotrexate) 2 3,000 6,000
9.Antibiotic (ciprofloxacin) 1 25,000 25,000
10.Antifungal( Cotrimoxazole) 4 800 3,200

7. Calculate the usage of item in total usage
Usage as a %total usage
= Usage of item x 100
Total usage

8. Item No. Item name Unit
cost
Annual
demand
Total cost per
year
Usage as a
% total
usage
1 Vit.B complex 5 50,000 2,50,000 27.39%
2 Prednisolone 6 40,000 2,40,000 26.29%
3 Antacid 4 30,000 1,20,000 13.14%
4 Cephalosporin 7 3,500 24,500 2.68%
5 Beta blocker (
propanolol)
3 20,000 60,000 6.57%
6 Metformin 4 41,000 1,64,000 17.96%
7 Anti TB (DOTS) 8 2,500 20,000 2.19%
8 Methotrexate 2 3,000 6,000 0.65%
9 ciprofloxacin 1 25,000 25,000 2.73%
10 10.Cotrimoxazole 4 800 3,200 0.35%
Total Usage=== ==== ====== 912700 100%

9. Item no. Cumulative
%age of item
Unit cost Annual
Demand
Total cost
per year
Usage as %
of total
usage
Cumulative
% of total
1 10% 5 50,000 2,50,000 27.39% 27.39%
2 20% 6 40,000 2,40,000 26.29% 53.68%
3 30% 4 30,000 1,64,000 17.96% 71.64%
4 40% 7 3,500 1,20,000 13.14% 84.78%
5 50% 3 20,000 60,000 6.57% 91.35%
6 60% 4 41,000 25,000 2.73% 94.08%
7 70% 8 2,500 24,500 2.68% 96.81%
8 80% 2 3,000 20,000 2.19% 99%
9 90% 1 25,000 6,000 0.65% 99.65%
10 100% 4 800 3,200 0.35% 100%
912700 100%
Sort the items by Usage

10. Result of calculation
Category item % of items % of usage Action
Class A 1,2 20% 53.68 % Close control
Class B 3,6 20% 31.10 % Regular
review
Class C 4,5,7,8,9,10 60% 15.22 % Infrequent
review

11. Class A 1.Vit.B complex
2.Prednisolone
Class B 3.Antacid
6.Metformin
Class C 4.Cephalosporin
5.Beta blocker ( propanolol)
7.Anti TB (DOTS)
8.Anti RA (Methotrexate)
9.Antibiotic (ciprofloxacin)
10.Antifungal
( Cotrimoxazole)