ABC Stratification standard logic

This table shows the ranking logic that is used to update the ABC Stratification fields in Product Warehouse Product Setup-Ordering if you have not created records in Product ABC Stratification Setup that change the parameters for assigning GRMOI, sales, and hit rankings.

Rank GMROI Stratification Group Sales Stratification Group Hits Stratification Group
A GMROI is over 200% The top 60% of stock and order-as-needed products contributing to total branch sales The top 60% of stock and order-as-needed product “hits”
B GMROI is over 100% The next 20% of stock and order-as-needed products contributing to total branch sales The next 20% of stock and order-as-needed product “hits”
C GMROI is over 0% The next 10% of stock and order-as-needed products contributing to total branch sales The next 10% of stock and order-as-needed product “hits”
D Remaining items Remaining 10% Remaining 10%
X Stock and order-as-needed items with a zero average inventory value and a gross margin that is positive
Y Stock and order-as-needed items with a zero average inventory value and gross margin that is zero or negative

Final ABC Stratification rank

The final rank is determined by considering the values assigned for sales, GMROI, and hits. This table shows the standard logic used to assign final level. You can override the final rank in Product Warehouse Product Setup-Ordering.

Sales GMROI Hits Final Rank Assigned
- X - Sales rank
- Y - D
A A A A
A A B A
A A C A
A A D A
A B A A
A B B A
A B C B
A B D B
A C A B
A C B B
A C C B
A C D C
A D A C
A D B C
A D C C
A D D C
B A A A
B A B A
B A C A
B A D B
B B A B
B B B B
B B C B
B B D B
B C A B
B C B B
B C C C
B C D C
B D A C
B D B C
B D C C
B D D D
C A A A
C A B B
C A C B
C A D B
C B A B
C B B B
C B C B
C B D C
C C A C
C C B C
C C C C
C C D D
C D A C
C D B D
C D C D
C D D D
D A A B
D A B B
D A C B
D A D B
D B A B
D B B C
D B C C
D B D C
D C A C
D C B C
D C C D
D C D D
D D A D
D D B D
D D C D
D D D D