Example The items kept in inventory by the school management studies at state university are instead below which claims should be classified as A claims B less c claims What percentage of claims in each land Item Annual usages 1 200 2 3 4 5 6 7 8 9 10 Item 2 10 7 4 1 8 9 200 100 2000 400 8000 1200 120 2000 1000 6 3 5 Solution In order to classify the items kept in the A B C Class items the first step into calculate the annual usuage value in the descending order Value per item Annual Usage S No Annual usage Rank 100 I II 2000 400 6000 1200 120 2000 1000 80 III IV V 1 40 2 360 00 3 0 20 400 4 20 00 8000 5 0 04 240 6 0 80 960 7 100 00 1200 8 0 70 1400 9 1 00 1000 10 80 400 00 32000 The table given below classifies the above items under three class A B C Annual Usage Value 36000 32000 12000 8000 8000 1400 1000 960 400 36000 32000 A 67 B Value per unit 400 00 C 366 00 0 20 20 00 20 00 0 04 0 80 100 00 0 70 400 00 8000 36000 Class UNIT V 68000 28000 Annual Usage Value ingots 206 10 3 10 Network Analysis 30 4000 50 10 IV VI VII VIII IX X 240 Iron the table it is clear that 20 of inventory claims belonging to A class controller 68 of total annual usage value 30 falls under class B 50 falls in C Ranking Rs I IX V X VIII III VI VII II of total items 68000x10 10000 68000x10 100000 68 68 4000x10 10000068 100