ABC Classification

For inventory planning, enterprises often group items they produce or sell into categories depending on the volume of production or sales, and cost.

The ABC approach states that a company should rate items from A to C, basing its ratings on the following rules:

• A-items are goods whose annual consumption value is the highest; the top 70-80% of the annual consumption value of the company typically accounts for only 10-20% of total inventory items.

• B-items are the interclass items, with a medium consumption value; that 15-25 % of annual consumption value typically accounts for 30% of total inventory items.

• C-items are items with the lowest consumption value; the lower 5% of the annual consumption value typically accounts for 50% of total inventory items.

• Creating ABC Configurations

• Running the ABC Analysis Engine

• Searching ABC Configurations

• Searching ABC Subnet Data

• Viewing ABC Analysis Results