ABC analysis

It is a distribution of items according to the movement that experiment, also called “turover”. In almost branch is confirmed on the “golden rule” by virtue of to wich with tool of management based on Pareto Law. It is consist of a ranking, in descending order, of a series of items according to annual sales volume or other criteria. Traditionally it has been classified into three classes, called A,B and C.
The group A usually represents from 10% to 20% of the goods with which you get from 50% to 70% of sales. tHe group B, usually contains the 20% of the items and it represents the 20% of sales. Finally the group C usually contains from 60% to 70% of the items and it represents only from 10% to 30% of sales.
Although in many companies this three groups are divided, in turn, in other, the current trend is gruop them into two types: A, when we are concerned on financially, and C when we are concerned on economically. The border between the two groups being maked by the profitability of monitoring that we apply to products A.
The ABC analysis is applied in different areas of the company. Using a similar analysis, can be made a rational distribution of the assorted genres in stock from the point of view of technical and transport based on economic criteria.