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Former Member

ABC Analysis

Dear all,

Can anyone tell me details about ABC Analysis. whats the purpose of this. Is it done in physical inventory basis or value of material basis.

Thanks

Prasant Sekhar

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4 Answers

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    Former Member
    Nov 02, 2007 at 06:56 AM

    Hi Prasant,

    You perform an ABC analysis to classify objects according to specific criteria or performance measures. Each object is assigned one of the following three indicators:

    A: important

    B: less important

    C: relatively unimportant

    An object can be a material, a vendor, or a plant.

    ABC analyses are used in Materials Management, Plant Maintenance, Cost Accounting, the Logistics Information System and ABAP Query.

    http://help.sap.com/saphelp_46c/helpdata/en/c1/375b7e449a11d188fe0000e8322f96/frameset.htm

    Reports:

    Easy SAP Menu -> Info System -> Inventory Management -> Materials -> ABC Analysis

    Regards

    Aasif

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    Former Member
    Nov 02, 2007 at 06:56 AM
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    Former Member
    Nov 02, 2007 at 07:57 AM

    Hi Prasant,

    ABC analysis stands for <u>All Better Control</u> of Inventory.

    Based on the value of the material & importance all the materials are catergorized into one of the catergories of A,B &C . Stocks are maintained and controlled accordingly so that vary important material should not be running out of the stock which may hinder the the whole process and make heavy losses to the organization.

    Regards,

    Ramesh

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    Former Member
    Nov 02, 2007 at 09:30 AM

    Hi Prashant,

    Based on Receipts & Issues, frequency of deliveries, material movements, so as to maintain the Inventory (Stock) levels error free, you maintain three different indicators (A/B/C) for the materials; which is based on;

    - fast moving

    - slow moving

    Hope it helps you.

    Aktar

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