2.2 ABC; Gini; Consumption Planning Flashcards
1
Q
Why is the ABC classification needed and what is it?
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A
- a tool for priorization
- when purchasing resources are misallocated
- important matters often are overlooked due to lack of focus
2
Q
Whats the Procedure for executing the ABS analysis?
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A
- calculate procurement volume per article number; list of all articles with purchase QTY per year * price per piece
- ranking order: sort according to purchase volumne (descending)
- illustrate (Lorenz curve); find out articles that together account for 80% (10.15%; 5%) of total volumne
- use Gini coefficient
5, interpretation
3
Q
Whats the Gini Coefficient and what do we use it for?
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A
- measure for unequal distribution; deflection of curve
- objective is to identify validity of ABC analysis
- when >1.8 outliers must be removed ans when <1.2 the distribution is to uniform and we cannot use ABC
4
Q
What is Consumption Based planning and when do we use it?
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A
- used when we cannot derive secondary demand
- takes place at the item level and predicts demand based on statistical methods
5
Q
whats the procedure of consumption based demand planning?
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A
- collection of time series
- determine consumption patterns
- selection of method
- forecast of demand
- evaluation of forecast quality
6
Q
What are the 4 kinds of consumption patterns and which evaluation methods are suitable for each?
A
- steady (floating meand average; 1st order exponential smoothing)
- unsteady (halbwegs floating mean average und halbewegs 1st order exponential floating)
- trendy (Holt)
- seasonal (Winter)
- trendy and seasonal (winter)
7
Q
Whats the floating mean average?
A
1/ how many periods we consider * (sum of all periods considered)
-> for next period, our horizon MOVES
8
Q
What is the 1st order exponential smoothing?
A
forecast period before + smoothing factor * (actual consumption period before - forecast period before)
