The document analyzes medications using ABC analysis to categorize them based on their annual consumption value. It calculates the annual consumption value of each medication based on its unit cost and annual demand. It then categorizes the medications into three classes: Class A accounts for 20% of items and 53.68% of total usage, Class B accounts for 20% of items and 31.1% of usage, and Class C accounts for 60% of items but only 15.22% of usage. The analysis finds that Vitamin B Complex and Prednisolone are Class A items that require close control, while Antacid and Metformin are Class B items requiring regular review.

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)