I need to know the logic the utility uses to re-classify ABC Class on items. I just need to understand the calculations IFS uses to classify the ABC.
I am trying to determine if it uses the total consumption value (based on Annual consumption value = Annual x Unit Cost) and calculates a cumulative percentage OR if it uses a weighted approach that assigns different weights to ‘value’ (annual consumption value) and usage frequency (how often an item is used) version and uses both total value and volume.
Can anyone provide me the IFS it uses to reclassify the ABC classes.
Also it is important to understand when is best to run this.. we just brought a separate company/site in Oct 23 but into the same company/site in June 2024. Will the ABC classification use only usage since June 2024? I do see on Inventory Part Availability Planning that the usage does show from last year, so would the ABC Classification see this and use that in their calculation? See IPAP example
Thanks
Rachael