Discount Brand Factory Case Summary

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ABC Analysis for finding maximum profit generating categories – Discount Brand Factory’s Case Study Abhishek Yawalkar 1st author's affiliation 1st line of address 2nd line of address abhishekyawalkar29@gmail.com Aakash Jangir 2nd author's affiliation 1st line of address 2nd line of address aakashjangir05@gmail.com 3rd Author 3rd author's affiliation 1st line of address 2nd line of address 3rd E-mail ABSTRACT Identifying the maximum profit generating products is a very essential step for a company to survive in this world full of competition. The objective of this study is to categorize different categories of products on the basis of profit generated by them for the company. The method used here for categorizing the products is…show more content…
It is very important to understand which categories are more important. The ultimate goal of a company is profit maximization and cost reduction. A company always plans to implement some methodologies to save money and increase their profit. One of the most efficient way of maximizing the profit is segmentation of products by ABC analysis. ABC segmentation is done on the basis of different criteria. The criteria can be based on annual consumption, cost, profit, demand, etc. This research consists of the ABC segmentation based on profit margin of different categories. In this scenario the profit can be increased by reducing the holding cost per item at store by analyzing the materials that generate least profit and hold space at…show more content…
STEP 6: Finding the percentages of profit generated with respect to the total profit generated by selling the products of all the categories and then finding the cumulative percentage profit. STEP 7: Segmenting the different categories into A, B and C classes respectively ( up to 70% profit generating categories in Class A, the next 20% profit generating categories in Class B, the next 10% profit generating categories in class C). Table 2: Shows the segmentation of different categories into A, B and C

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