Modify ABC Class

Explanation

Use this activity to maintain existing ABC class codes. The information you enter in this tab window is used for ABC analysis. The system is installed with three classes with the following default settings: A80%, B15%, and C5%. The task of modifying default values is to be performed by a system administrator or equivalent person.

In ABC analysis, the values of the parts are calculated in terms of volume and the parts are sorted in value order. ABC classes enable tighter control over high-volume value parts to keep the inventory level as low as possible. After the ABC analysis has been completed, the parts are classified by code letter according to how much of the total volume value each class represents. Class A indicates high-volume value parts and class C indicates low-volume value parts. The cumulative value of all classes must total 100%, or the information cannot be saved. This calculation is not carried out for configured parts.

Prerequisites

There are no specific prerequisites.

System Effects

As a result of this activity:

• The modified percentages will be used during ABC analysis to determine which parts will be assigned which class codes.
• New part records are automatically assigned class C until ABC analysis is run.

Window

Inventory Basic Data

Related Window Descriptions

Inventory Basic Data
Inventory Basic Data/ABC Classes

Procedure

1. Open the Inventory Basic Data window.
2. Click the ABC Classes tab.
3. Enter the percentage in the ABC % column.
4. The Accumulated % column cannot exceed 100 %, so you will have to decrease one or more of the other percentages by the amount you entered for the new class.
5. Save the changes. Note that the system will not let you save the record if the Accumulated % column does not total 100%.