Supply chain analysis by ABC classification: the case of a Mexican company

Abstract

There is a direct relation between products’ shelf life and their sales volume. The analysis of these factors is important for logistic planning, since products’ positioning in the warehouse must facilitate their distribution according to their rotation in the inventory. The analysis of supply chain costs is relevant to identify the items that most contribute to a company’s profit. This study objective is to identify the items with the highest value of inventory of Mexican company BASAL by classifying them into categories according to the logics of ABC analysis. Results showed that 80% of sales are concentrated in 28 articles, which represent 22% of the company’s products. Attention must be given to the supply of articles with slower movement because they would also increase total sales.