Recipe: Master ABC Categorization

Set up the most frequently used categorization in ABC Analyzer.A double ABC categorization with the limits 80/15/5 and extra categories for new, dead and phantom items.

WHAT:

A Master ABC Categorization divide your items into the 9 classic ABC categories and the most frequently used extra categories.

WHY SET UP A MASTER CATEGORIZATION?

The categorization gives you a quick and useful overview of your stock. It gives you the opportunity to identify your most important items (AA) and divide your stock into homogenous groups that can be managed differentiated.

If the double ABC categorization is completely new for you, we recommend you to read The principles behind ABC Analyzer.

COLUMNS NEEDED IN THE CALCULATION:

• Cost value 12 months (NUMBER) (cost price * sold pieces 12 months)
• Pick 12 months (not sold pcs!) (NUMBER)
• Stock value (NUMBER)
• A date for the first receipt (DATE)

SET-UP:

The categorization is set up by the window “New categorization” in ABC Analyzer. Find the menu below the top menu “Edit”.

RELATED RECIPES:

You can at any time extend your Master ABC Categorization with relevant extra categories.

Use for example the following recipes to build useful extra categories:

• The item’s age: Set up a category for new items that are about to be phased into the normal product selection (or have to be sent back due to lack of sales).
• Turnover rate per category: Keep an eye on items with an unusually high or low turnover rate compared to their current ABC category.