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Classification of Materials. ABC classification which is the most popular method is discussed in detail. The other classifications like VED, combined ABC-VED etc. are also mentioned.
Title: Classification of Materials. ABC classification which is the most popular method is discussed in detail. The other classifications like VED, combined ABC-VED etc. are also mentioned.
Category: Business & Economy
Details: Words: 1273 | Pages: 5.4 (approximately 235 words/page)
Classification of Materials. ABC classification which is the most popular method is discussed in detail. The other classifications like VED, combined ABC-VED etc. are also mentioned.
Classification Of Materials
ABC Classification
Stockroom inventory is classified into categories called ABC.
* "A" - items are the highest priority, the tightest control, frequent deliveries, close follow-up, and accurate records. Planning and Scheduling these parts utilize MRP (Material Requirements Planning), DRP (Distribution Requirements Planning, or EOQ (Economic Order Quantity) or other lot sizing techniques such as Lot for Lot. 10 % of the "A" items volume accounts for 70% of the total inventory value
* "B" - items are the priority …showed first 75 words of 1273 total…
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…showed last 75 words of 1273 total…Moving
* Non-Moving
This classification gains importance in terms of rate of movement of materials in the stores .
Non moving items are the items which has become obsolete over time.
Conclusion
The idea behind these classifications is to draw the attention of the management selectively. The problem-materials are thus highlighted and precious management time can be devoted to these problem items in the inventory.
Management by exception for better control is the theme behind these Classifications.
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