ABC Analysis Categories
There are no fixed threshold for each class, different proportion can be applied based on objective and criteria. ABC Analysis is similar to the Pareto principle in that the 'A' items will typically account for a large proportion of the overall value but a small percentage of number of items.
Example of ABC class are
- ‘A’ items – 20% of the items accounts for 70% of the annual consumption value of the items.
- ‘B’ items - 30% of the items accounts for 25% of the annual consumption value of the items.
- ‘C’ items - 50% of the items accounts for 5% of the annual consumption value of the items.
Another recommended breakdown of ABC classes:
- "A" approximately 10% of items or 66.6% of value
- "B" approximately 20% of items or 23.3% of value
- "C" approximately 70% of items or 10.1% of value
Read more about this topic: ABC Analysis
Famous quotes containing the words analysis and/or categories:
“... the big courageous acts of life are those one never hears of and only suspects from having been through like experience. It takes real courage to do battle in the unspectacular task. We always listen for the applause of our co-workers. He is courageous who plods on, unlettered and unknown.... In the last analysis it is this courage, developing between man and his limitations, that brings success.”
—Alice Foote MacDougall (1867–1945)
“Of course I’m a black writer.... I’m not just a black writer, but categories like black writer, woman writer and Latin American writer aren’t marginal anymore. We have to acknowledge that the thing we call “literature” is more pluralistic now, just as society ought to be. The melting pot never worked. We ought to be able to accept on equal terms everybody from the Hassidim to Walter Lippmann, from the Rastafarians to Ralph Bunche.”
—Toni Morrison (b. 1931)