instead of taking item as spare, raw materials, semi-finished and finished items and then classifying as A, B and C. There can be more then three classes and the period of consumption need not necessarily be one year
Application of ABC Analysis: ABC analysis can be effectively used in Material Management. The various stages where it can be applied are: (1)
Information
of
items
which
require higher degree of control. (2)
To
evolve
useful
re-ordering
strategy. (3)
Stock records.
(4)
Priority treatment to different
items.