ABC analysis
Generate ABC analysis to create an ABC analysis report for reference purposes and/or to update the class assignments for part.
ABC inventory analysis is an inventory method that enables you to divide your stock inventory items into three groups or classes: A, B, and C. ABC class assignments are used as selection criteria for a number of material management functions, such as EOQ calculations, stock replenishment, repairable spares, and physical inventory counts.
To generate ABC analysis, enter a percentage value as the cutoff point for each of the three classes. The system then assigns parts to one of the ABC classes by comparing the part's value to the value of other parts. Parts assigned to class A represent the largest percentage of your total inventory value. Parts assigned to class B represent a moderate percentage of your total inventory value. Parts assigned to class C represent a small percentage of your total inventory value.