All,

I have been working on a success engagement with a customer who wants to do their ABC analysis in a manner different from the standard way IFS calculates it. The standard method is based on the sales transactions but if you have high volume items that are in stock and not yet sold (large engine assemblies that are infrequently sold) or low value but high-volume items (such as fasteners that can be replenished in days), the standard method may result in false settings. The current calculation does not have any consideration of the items' lead times.

The customer would rather set the value of the items to set the ABC class based on their value rather than the sales amount.

Has anyone encountered this dilemma before and if so, how did you handle it? We COULD use an external script to do this evaluation, so I'd appreciate your guidance on this!

Thanks!