Implementing ABC Stratification

The Product Administration Month End Processing Report uses the Product Replenishment Setup warehouse, vendor or product line record to make the calculations using the stratification rankings instead of the standard hits rankings if those records exist. After you set up your master ranking record at the company level, you can select ABC Stratification at the warehouse, vendor, or product line level.

  1. Select Product > Setup > Replenishment.
  2. Open an existing company record or create a new record.
  3. On the Ranking view, select Hits in the Perform Detail Ranking Functionality field.
  4. Specify the number of rank levels and the number of months of history to use when ranking products. Each rank corresponds to an alphabetic character from A to Z. You can specify up to 26 ranks, although it is recommended you limit the ranks to 5 or less. The number of ranks must be at least 4 to work for ABC Stratification ranking. If you are only implementing ABC Stratification, specify 4 for the number of ranks and 12 for the number of months.
  5. To implement Hit ranking, click Detail Ranks to define the percentages for the number of ranks you defined in step 4. If you are only setting up ABC Stratification, review the Min/Max Lead Time Safety Adjustment and PO Receipt Safety Exceptions settings. You do not define the rank percentages for ABC ranking on this window. That is performed in Product ABC Stratification Setup.
  6. Click Save and close the maintenance window.
  7. Open an existing warehouse record or create a new record.
  8. On the Ranking view, select ABC Stratification in the Perform Detail Ranking Functionality field. To make any changes to the Min/Max Lead Time Safety Adjustment or PO Receipt Safety Exception settings for this warehouse, click Detail Ranks.
  9. Click Save.
  10. Repeat steps 7-9 for each warehouse you want to set up to use ABC Stratification. You can also set it up for vendors and product lines, although this is not recommended.