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The baseline Stock ABC Analysis is recommending parts with no value and no usage be classified as “A”. “A” items should be set on the parts used most often and the highest value (based off of the % set).
What is used to derive the calculations for the analysis on both the stock record and the part?
We need to know what are the calculations based on when that analysis is generated?
Best answer by Ann Degroat
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"except from Reference Guide:
Stock ABC analysis is used to classify stock either by usage or value (cost). The stock is assigned an ABC code of A, B, or C, according to percentages you specify. You can perform the following types of ABC analysis:
All parts, regardless of whether stock exists
All stock
Stock at the location or bin level; if stock is analyzed in multiple locations and bins, different ABC values can be assigned to each bin
For example, when you perform stock ABC analysis, you may specify that the A group is 20%, the B group is 30%, and the C group is 50%. After ABC analysis, ABC codes are assigned as follows:
New Usage ABC Code
New Value ABC Code
A assigned to top 20% used A assigned to top 20% value
B assigned to next 30% used B assigned to next 30% value
C assigned to last 50% used C assigned to last 50% value
Before you post the results of the analysis, you can choose to manually assign different ABC codes to a part.
Based on the result of the analysis, you can choose to perform cycle counts only on items with an A code, for example, because they are the most valuable or the most used.."
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