The ABOM method follows a process to determine average weights for each material for groups of like products (“ABOM groups”).
For example, a grocery retailer may be obligated to report on several varieties of frozen dinners that come in slightly different sizes (e.g. 150g, and 250 g). Each frozen dinner has similar packaging; a boxboard outer box and a PET plastic tray and a plastic film cover.
With the ABOM method, you can calculate the average weights of your various materials. The steps below will walk you through the process.
Calculating ABOMs by using weighted averages, allows each product to be weighted relative to its percentage of total sales. CSSA recommends this method because it results in a more accurate allocation of material weights to each of the products inside an ABOM group.