Activity Amount

The activity amount parameter is used to classify the items with higher past and/or projected inventory activity amounts into higher ABC classes.  If activity amount is to be used as a classification criterion, then at least the class A parameter must be entered.  A part's activity amount is calculated and compared to the entered parameters during the classification process.  If the part's activity amount is greater than the A class activity amount parameter, it is set to class A.  If it is less than the A class parameter it is compared to the B class parameter in the same way.  The same comparison then continues down to the D class parameter.  At this point, a part with an activity amount less than the D parameter is automatically classified as E.  The E parameter does not get considered in the classification process.  If a parameter is left blank, parts will automatically be placed in the related class if they have an activity amount less than the previous class parameter.  If a class parameter is set to the same value as the previous class, parts will never be placed in this class.  Within the classification process, a part's activity amount is calculated as follows:

If the NUMBER OF MONTHS HISTORY is not blank, the part's past activity is accumulated for the number of months specified.  Twelve months activity history is retained by the system automatically via the inventory transaction history.

If the FUTURE HORIZON DATE is not blank , the part's future usage up to and including the horizon date is accumulated.  Expected purchase receipts, customer order shipments, manufacturing order receipts and component issues are processed for the company and warehouse being processed.   Both the horizon date and months history may be specified in the same request.