This document provides an example of performing an ABC analysis on a list of 10 drugs in an inventory. It lists the drugs, their unit costs, total units, and cumulative costs. Based on the cumulative costs, it categorizes the drugs into classes A, B, and C, with class A contributing the most to total costs. The analysis found that 0% of drugs fell into class A, 30% into class B, and 70% into class C.

1. SUBMITTED BY UNDER THE GUIDANCE OF
VELAVARTHIPATI PRUDHVI SAI Dr. G.RAMESHPHARM.D
15AB1T0029 DEPARTMENT OF
IV PHARM. D PHARMACY PRACTICE
VIGNAN PHARMACY COLLEGE
(Approved by AICTE & PCI Affiliated to JNTU KAKINADA)
VADLAMUDI, GUNTUR DIST, ANDHRA PRADESH, INDIA, PIN: 522 213

2.  Since there are approximately many items in the inventory
to handle, there should be some to categorize & organize
them so that it is easier to manage & handle. In that case,
ABC classification that is powerful tool to prioritize &
classify items according to inventory value can be
considered. The contributions to the inventory value of
class A, B & C are above 75%, 10-75% & below 10%
respectively.

3. Performing an ABC analysis:
 Listing all medical applies in the inventory.
 Entering annual consumption of each medicine.
 Calculating percentage of total annual sales contributing
by each drug.
 Sorting the list by value of each item.
 Deciding cut off points to group inventors to A, B & C
classes.

4. Perform ABC analysis for the following:
S.NO NAME OF DRUG DOSAGE FORM UNIT COST TOTAL UNITS
1. Acarbose Tablet 6 8300
2. Albendazole Tablet 10 5000
3. Chloroquine Tablet 10.1 200
4. Chlorampheniramine Tablet 0.1 50000
5. Diclofenac Tablet 0.5 50000
6. Erythromycin Tablet 2.1 2000
7. Furosemide Tablet 0.4 100000
8. Gentamycin Ampoule 6.1 120800
9. Lidocaine Ampoule 11.8 2150
10. Metronidazole Tablet 0.3 200000

5.  ABC analysis:
DRUG ASCENDING ORDER CUMMULATIVE
COST
% TOTAL COST %CUMMULATIVE
COST
Chloroquine 2020 2020 0.2 0.110
Erythromycin 4200 6220 0.4 0.339
Chlorpheniramine 5000 11220 0.5 0.612
Diclofenac 25000 36220 2.50 1.977
Lidocaine 25370 61590 2.54 3.363
Furosemide 40000 101590 4.0 5.547
Acarbose 49800 151390 4.9 8.266
Albendazole 50000 201390 5.0 10.997
Metronidazole 60000 261390 6.0 14.273
Gentamycin 736880 998270 73.81 54.51

6. REPORT:
Percentage of Category ‘A’ drugs is (0) 0%
Percentage of category ‘B’ drugs is (3) 30%
Percentage of category ‘C’ drugs is (7) 70%

7. THANK YOU