What is the ABC taxonomy? prototyping services
ABC classification (Activity Based Classification), the full name should be ABC inventory control method. It is similar to the “28 rules” that we often say. After research and analysis, the “minor minority” was identified and the key management was focused. The key minority was Class A, and the rest was “general”, which was divided into Class B and Class C. The main focus on A-class products, can get a multiplier effect.
How to classify?
According to the degree of inventory, inventory is classified as A, B, and C:
Type A articles: The proportion of varieties is about 10%, which is a small proportion; but the annual consumption amount is about 70%, and the proportion is relatively large. It is a key minority and needs key management.
Type B items: The proportion of varieties is about 20%; the amount of annual consumption is about 20%, and the ratio of varieties to the amount of money is basically the same, and regular management can be used. prototyping services
Category C: the proportion of varieties is about 70%, accounting for a large proportion; but the proportion of annual consumption of 10% up and down, such a large number of items, taking up a lot of management costs, but the amount of annual consumption is small, as long as the general Management can be.
How to manage A, B, and C items
Class A products:
◆ management: try to minimize the inventory (of course, seasonal reserves and price increases before the reserve is inevitable), improve capital turnover, inventory can maintain the optimal validity period, can reduce storage management costs.
Order: According to the difference between the inventory and the target inventory of regular orders. Small batches, multiple batches of on-demand storage, on the premise of reducing inventory, to ensure supply. prototyping services
◆ Product location: The best location near the import and export, easy to carry.
◆ Inspection method: check daily, detailed statistics.
Class B products:
◆ Management: Adjust the strategy at any time according to the sales volume to control the inventory.
◆ Ordering method: When the inventory reaches the minimum inventory, order by volume.
◆ Product location: The second best location of the warehouse.
◆ Inspection methods: Weekly inspection, according to species statistics.
Class C products:
◆ Management method: The “double stack method” is used to divide the products into two piles, one pile is regular inventory for daily delivery; the other stack is for inventory and stored separately. After stocks are used up, stocks are reserved from the stock of orders. This can reduce the number of inventory inventory and save energy. prototyping services
◆ Ordering method: You can purchase a lot, strive for the advantage of price, and save costs.
◆ Product location: The relatively poor location of the warehouse.
◆ inspection methods: monthly or quarterly inspection, according to the total amount of statistics.
As the saying goes, “Put sesame seeds and lose watermelon.” In the management of the warehouse, come up with the main energy to deal with the main things, not to say that to manage categories B, C products, in categories B, C products also have relatively important and secondary products that can be recycled ABC classification The classification management will help reduce inventory, save management costs, and thus reduce management costs. prototyping services
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