ABC models are used to rank products based on average monthly usage during a rolling 12-month period in one or more warehouses. The system then assigns ABC codes to products based on those rankings. In order for the system to rank the products for an ABC model, you need to set up product selection criteria for various ABC codes.
The ABC Model screen of the Purchasing tab is where you set up and maintain ABC models. You can also access the ABC classification calculation information from this screen.
Note: An ABC model is not used for ABC classification of products until it is assigned to a warehouse. The System Configuration screen of the Vision Configuration tab is where you assign an ABC model to a warehouse. For more information, refer to Specify ABC classification settings for a warehouse.
Note: To access the ABC Model screen, you must have the proper security privileges. The ROP Maintenance job function needs to be assigned to one of your roles. Roles are assigned to users in the User Maintenance on the Security Maintenance screen of the Vision Configuration tab. For more information, refer to About roles and job functions.
On the ABC Model screen of the Purchasing tab, select the ABC model on which you would like to work. (For instructions on how to do this, refer to Modify an ABC model.)
Note: Before you can set up calculation data for an ABC rule, options must be selected for each of the rule's three ABC factors (manufacturer, product class, and product type) in the ABC Rules area.
Right-click the gray box in the far left column of the rule whose ABC classification calculations you would like to set up or modify, and then select Change Calculation Data on the shortcut menu. The ABC Classification dialog box appears, enabling you to set up and maintain the ABC calculations.
To rank the products that meet your selected ABC classification factors from highest usage to lowest, type percentages in the ABC Classification Calculation area as needed. This area enables you to specify percentages for product selection criteria associated with various ABC codes.
For example, let's say that you type 10 in the A % field, 20 in the B % field, and 70 in the Z % field. The system assigns an ABC code of A to the top 10% of products, the fastest movers. In addition, the system assigns the B code to the next 20% of products. The Z code is assigned to the remaining products, the last 70%, which are the slow movers.
Note: It is not necessary to type a number in every ABC percentage field. However, all of the numbers must add up to 100.
Click the Accept button to save your ABC classification calculations. The ABC Classification dialog box is closed.
Click the Accept button to save your ABC model changes.
During End-of-Day processing, the system checks for changes made to the ABC models and updates ABC codes for every affected product.