To perform an ABC analysisABC analysis divides items into three categories for inventory control and planning:
In the Perform ABC Analysis (whina6210m000) session, you can perform the ABC analysis by warehouse and/or by item. LN categorises the item based on its actual turnover. Turnover can be calculated based on cost price, sales price, or quantity. In the ABC analysis, LN calculates turnover by item and the total turnover of all items. LN subsequently calculates relative turnover in terms of a percentage of total turnover. This percentage is used to classify the items into the three groups. Note If you perform the ABC analysis by:
Example A items, together contributing 80% to total turnover, B items contributing 15%, and C items contributing 5%.
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