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
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Famous quotes containing the word categories:
“All cultural change reduces itself to a difference of categories. All revolutions, whether in the sciences or world history, occur merely because spirit has changed its categories in order to understand and examine what belongs to it, in order to possess and grasp itself in a truer, deeper, more intimate and unified manner.”
—Georg Wilhelm Friedrich Hegel (1770–1831)