Product Administration ABC Inventory Evaluation Report overview
Function acronym: ICAE
Use this report to stratify and rank your inventory products using the standard stratification group and ranking logic.
If a Product ABC Stratification Setup record exists, the specified parameters from that record are applied to the system-generated values to fine tune the stratification. If an ABC stratification record exists for order-as-needed products, the ranking logic applies a different algorithm.
These products are not included in the analysis:
- Build-on-demand kits
- Direct ship products
- Do-not-reorder products
- Inactive products
- Superseded products
- Labor products
Assigning profitability levels
Generating profitability ratios is the first step to evaluating your inventory. This report uses a blended average algorithm to calculate average inventory, which is essential for generating profitability ratios and assigning a level or rank. To ensure precise average inventory figures, run the Product Administration Average Inventory Daily Calc Report daily.
The Product Administration ABC Inventory Evaluation Report uses the average inventory results from Product Administration Average Inventory Daily Calc Report to calculate a product’s profitability contribution. After the profitability ratios are calculated, Product Administration ABC Inventory Evaluation Report assigns a level.