An inventory classification scheme that ranks items based on past (or projected) annual usage times cost or price, with A items accounting for the top 10-20% in terms of number of items and 60-70% of dollar volume, B items the next 20-25% of items and 20-30% of dollar volume, and C items as the bottom 60-70% of items and only 15-30% of the dollar volume.
A Class D is sometimes used for obsolete or non-moving items. ABC categories are often used in specifying the amount of attention and control paid to specific items, (with the tightest control over A items), in exception reporting and in selecting items for periodic inventory cycle counts (A items are counted the most frequently)
An inventory classification scheme that ranks items based on past (or projected) annual usage times cost or price, with A items accounting for the top 10-20% in terms of number of items and 60-70% of dollar volume, B items the next 20-25% of items and 20-30% of dollar volume, and C items as the bottom 60-70% of items and only 15-30% of the dollar volume.
A Class D is sometimes used for obsolete or non-moving items. ABC categories are often used in specifying the amount of attention and control paid to specific items, (with the tightest control over A items), in exception reporting and in selecting items for periodic inventory cycle counts (A items are counted the most frequently)
