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ABC Classification - Calculations
ABC Classification - Calculations
IC250E
A. Housekeeping
1. See Common Processing Routines - Housekeeping in this manual for a general discussion of this subroutine. Processing specific to this program is described below.
2. The Company Name (COMNAM) is retrieved from the company name record on the System Control file (CT100M).
3. The following records are retrieved from the Reference file (REFERP): the date format (category 049), the part type codes and descriptions (category 405), and the entity name (category 002).
B. Mainline
1. The ABC Analysis Transaction file (IC240AL) is read by warehouse number.
2. Once the Warehouse Description (IC170M) record has been read and inventory activity processing determined, work fields are initialized and each part found on the Warehouse Balance file (IC140ML6) is processed for ABC classification. Initial classification information is stored on the ABC Analysis Workfile (IC250AP). Reference File category D84 is retrieved to determine the planned availability flag.
Classification is determined by:
a) Leadtime (Part Master)
b) Standard Unit Cost
· If the company/warehouse combination is a manufacturing company/warehouse, the unit cost equals the part master value.
· If the company/warehouse combination is not a manufacturing company/warehouse, the unit cost equals the moving average unit cost (if the costing method is moving average) or the standard unit cost (if the costing method is standard) from the warehouse balance record.
c) Inventory Value (Part Master and Warehouse Balance)
or
Activity Amount (Warehouse Balance)
3. Once all parts in a given warehouse's Warehouse Balance file have been processed and the totals accumulated, each part written to the ABC Analysis Workfile is reprocessed to calculate percentage ABC classification. ABC classification is determined and, if requested, updated on the Warehouse Balance file.
4. If detail reporting was requested, the ABC Inventory Classification (IC250B) is also produced from the Summary report (IC250A).
Classification is determined by:
Inventory Value Percentage
or
Activity Amount Percentage