Generally speaking, the inventory of the enterprise reflects the level of the enterprise, investigating the inventory of the enterprise, can generally find out the operating situation of the enterprise.Although the ABC analysis method has formed the basic management method in enterprises and has a wide applicability, it is currently widely used, but still in the inventory analysis.The general steps for the ABC analysis are as follows:
I. Collect data
Collect relevant data by analysis object and analysis content.For example, to analyze product costs, data on product cost factors and product cost composition should be collected; to analyze value projects for a certain system, data on various local functions and local costs should be collected.

For example, the average amount of inventory funds are analyzed, in order to understand which items occupy more funds, so that the key management.The data to be collected are: average inventory of each inventory material, unit price of each material, etc.
2. Processing data
Organize the collected data, calculate and summarize as required.For example, the average inventory multiplied by the unit price, calculate the average capital occupation of various items.
III. Make the ABC analysis table
The column of the ABC analysis table is composed as follows:
Item name;
The cumulative number of items, that is, each item is a number of items, the cumulative number of items is actually the serial number;

The cumulative percentage of items, the percentage of total items;
Unit price of items;
Average inventory;
The unit price multiplied by the average inventory in column 5 is the average capital occupation of various items;
For the accumulation of the average capital occupation amount;
Accumulated percentage of the average capital occupation;
For classification results.

The tabulation is performed as follows:
Fill in the average capital occupation calculated in step 2 in the sixth column of the table in a large queue.Subject to this column, the name of the equivalent items shall be filled in the first column, the unit price in the fourth column, the average inventory is filled in the fifth column, and press 1.2.3.4 … in the second column The number is the accumulation of items.Thereafter, calculate the cumulative percentage of items, fill in the third column; calculate the cumulative accumulation of average capital occupation, and fill in the seventh column;. Calculate the cumulative percentage of the average capital occupation, and fill in column 8.
V. Classification was determined according to the ABC analysis table

According to the ABC analysis table, observe the first few items with the cumulative percentage of column 3 and column 8, identify category A with about 60180% and 20130% of category B, the rest is class C, the opposite to class A, whose cumulative item score is 60180%, while the average fund percentage is only 5115%.
V. Draw the ABC analysis drawing
With the percentage of the cumulative item as the horizontal coordinate and the cumulative capital occupation percentage as the vertical coordinate, follow the data provided in the third and eighth columns of the ABC analysis table, take the points on the coordinate map, and connect the point curve to draw the ABC curve.
The ABC analysis graph was made by comparing the data corresponding to the ABC analysis curve, determining the three categories of A, B, C in the ABC analysis table, and indicating the A, B, C three categories on the graph.In management, if the histogram of ABC analysis is still not strong, the histogram shown in Fig.

VI. Determine the key management requirements
The results of ABC analysis only straighten out the complex things, find out the status of various parts, and clarify the focus.However, the main purpose of ABC analysis is to solve difficulties. It is a difficult skill. Therefore, the analysis must be proposed to truly achieve the purpose of ABC analysis.At present, many enterprises in order to deal with the acceptance inspection, formal ABC analysis, although there is some role in understanding the family, but did not really grasp the truth of this method, failed to transform the analysis into benefits, which should be tried to avoid.
The application of ABC analysis achieves the following results in storage management:
The 1, has compressed the total inventory volume;

The 2, had freed up the occupied funds;
The 3, rationalizes the inventory structure;
4, saves the management power.