ABC Analysis Flashcards
1
Q
Briefly, what is an ABC analysis?
A
It is an analysis of inventory which classifies items by importance and value, with A being the most important and C the least.
2
Q
What is Pareto’s theory?
A
Pareto’s theory is that 80% of land is owned by 20% of people.
We can apply this to logistics in the sense that 80% of value in products is only in 20% of them.
3
Q
In an ABC analysis, an A classified item would be given what attitude?
A
It would be looked at/reviewed on almost a daily basis.
4
Q
In an ABC analysis, a B classified item would be given what attitude?
A
It would be looked at/reviewed on almost a weekly basis.
5
Q
In an ABC analysis, an C classified item would be given what attitude?
A
It would be looked at/reviewed on almost an annual basis.
