THE GROUPS :
THE GROUPS GROUP ‘A’
Low volume, high Rupee value
GROUP ‘B’
Moderate volume, moderate Rupee value
GROUP ‘C’
High volume, low Rupee value
Slide 3:
% of total Rupee Usage % of total No of Items A Items B Items C Items
Slide 4:
Selective control = better management
Wastage avoided
Confusion from excessive control avoided
Slide 5:
Conventionally, ABC refers to
annual consumption value
Price
Criticality
Non-availability
Size Vs. Weight
Perishability Periodic Review essential
V E D Classification :
V E D Classification Criticality
Intrinsic value may not be high
Inventory investment may be low
“absence” cost very high
CHARACTERISITICS :
CHARACTERISITICS VITAL: Large inventory, High cost of stock-out, high service level
ESSENTIAL: ] Progressively
DESIRABLE: ] declining / rising
COMBINATION OF ABC & VED :
COMBINATION OF ABC & VED
PQR CLASSIFICATION :
PQR CLASSIFICATION Low / Medium / High Shelf life
XYZ CLASSIFICATION
Size Vs. Weight
Low / Medium / High bulk