Assignment task: Sam has a kitchen store in the heart of Helsinki. The store sells all kind of kitchen equipment. Sam has been really busy during last years and the assortment of the store has grown a lot. Sam has not really planned the growth and he is uncertain which products are actually generating the sales so that he could focus on right items. Sam has noticed that sometimes popular products run out of shelves and some products seem to just collect dust on them.
Perform an ABC (sales value) - XYZ (sales units) analysis on Sam's data (ABC XYZ analysis.xlsx).
Answer to following questions:
A. How big % of products generate 50% of sales?
B. Additional question: How big share of the margin do these products have?
C. Based on the data, what decisions would you make if you were Sam?
D. What other calculations would you make?
E. Is the information provided sufficient? If not, what information would you need in order to make decisions?