Volume value analysis

This procedure is used to analyze parts with ABCClosed ABC codes are used to classify the range of parts by the volumes you sell. The codes are used as a scale for the parts that turn over the most money. The turnover is calculated by multiplying the price of the part by the annual volume. Parts that turn over the most money are called "A-parts", and after that, "B-parts", etc. code and volume value based on price an annual volume. You can also classify parts and update the parts' ABC codes in this procedure. The classification is done according to limit values in amounts, in percent of the total volume value, or in percent of the number of parts.

ABC codes

Parts with different volume values are classified using ABC codes. All ABC codes that are used must be registered in the Basic dataClosed With "basic data" we refer to the static records in a database, for example parts, customers, users, work centers, etc. – Part procedure. You can manually register ABC codes for parts in the Part register and Part list procedures, but in this procedure the ABC codes are calculated and suggested based on the parts' volume value.

The purpose of the ABC codes is to capture as large a volume value as possible with as few parts as possible. Before you start the run, you can adjust the suggested limit values for the different classifications.

For example, the parts of the ABC code that applies for high value parts should represent 80% of the volume value, 10% of another ABC code represents parts with a little lower value, 5% of a third, 3% of a fourth and 2% of a fifth ABC code. Another way is to use amount limits during the calculation. Example: Parts with a volume value greater than 100,000 becomes A-parts. Parts with a volume value between 50,000-100,000 becomes B-parts.

During calculation, the program strives to classify parts using these shares or amount limits of the volume value as close as possible to these limit values. This is made by sorting the list by volume value in descending order. Then the rows' accumulated value is calculated. This accumulated value is then used during the classification in percent. At the same time, the program suggests the right ABC codes for the parts, based on their current volume value.

This way you can easily identify the parts that represent the largest share or portion of the volume value. Those are the parts that either have a high value, or a large annual volume, or a combination of these. ABC codes can be used as a selection term in most lists in the system. They are useful when dividing parts based on how important it is to actively working with the part.