Product ABC Stratification Setup overview

See ABC stratification standard logic.

You can create stratification logic for an individual warehouse or for all warehouse locations and for stock or order-as-needed products. If a Product ABC Stratification Setup record is available, the Product Administration ABC Inventory Evaluation Report uses the parameters from those records to assign values in Product Warehouse Product Setup. You can specify these parameters:

• The relative weighting of each stratification group - sales, GMROI, and hits
• The relative importance of each rank - A, B, C, and D
• The spread - percentage of products assigned to each value (A, B, C, D) in the final rank
• The sales, GMROI, and hits by rank - A, B, C, and D For example, you might want to change the standard logic for sales to have A assigned to the top 80%, B assigned to the next 10%, C assigned to the next 5%, and D assigned to the remaining 5%. You can use this instead of the default logic that assigns A to the top 60%, B assigned to the next 20%, C assigned to the next 10%, and D assigned to the remaining 10%.

The stratification logic applies different rules for stock and order-as-needed products to obtain more precise stock stratification results. Stratifying them separately helps you identify order-as-needed products that might be candidates to stock.