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How to calculate the proportion of products

How to calculate the proportion of products

A significant role in the conduct of any business plays a competent management analysis.

Finance, range, cost - all this requires constant attention and optimal use in order to achieve better results.

The set of solutions and implementation structure depend on the analysis range.



Usually it required to calculate the relative the weight products in terms of sales, and the soldquantity. Knowing both indicators, we can determine the sales engines and the products that are price lists for the product range. Also, based on this information to make strategic management decisions concerning the assortment policy and future production or realization of each product group.


To calculate the relative the weight revenue production, divide the weights range to more product groups. Determine how much revenue in absolute terms accounts for each product group. Then each group revenue share in the total revenue. These figures translate into percentages.


To calculate the relative the weight product quantity, make a similaractions. Divide the range into groups of similar goods, the goods suppliers or any other grounds. Number of products in each group, divide the total number of items. Thus, you will see the most numerous and small groups of goods.


Usually more effective is the calculation of the specific the weightand the product of the share in the revenue. This is based ABC-analysis, which allows to define the highest priority commodity groups in the total assortment. Also, it is the result of the grouping of the goods according to the degree of influence on the overall result.

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