An ABC code indicates how fast a stock or temporary product moves in a warehouse. For example, if a product has a high turnover rate, then it is a fast mover. The ABC codes can be used to determine how much of stock product to buy and when to order to assure the right turnover.
During End-of-Month processing and during on-demand ROP/EOQ recalculations, the system recalculates ABC codes for individual products if ABC classification is to be performed for the warehouse.
You can use an ABC model 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. The ABC Model screen of the Purchasing tab is where you set up an ABC model. For more information, refer to Set up a new ABC model.
The Warehouse maintenance on the System Configuration screen of the Vision Configuration tab is where you set up ABC classification settings for a warehouse.
Note: You can select the ABC model for a warehouse only if the inventory class for the warehouse is set to sellable inventory. For more information, refer to Specify the type of inventory that a warehouse carries.
Note: To access the Warehouse maintenance, you must have the proper security privileges. The File Maintenance Warehouse 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 Vision Configuration tab, click the System Configuration button. The System Configuration screen appears.
Click the Warehouse folder to expand its contents.
Click the folder for the warehouse you would like to modify.
Click the Purchasing folder. The Purchasing screen appears.
Click the ABC Classification tab.
If ABC classification should not be performed for products in this warehouse, clear the Perform ABC Classification check box.
If ABC classification should be performed for products in this warehouse:
Select the Perform ABC Classification check box.
If a specific ABC model should be used for ABC classifications, select it in the ABC Model drop-down list.
If the ABC classification performed in this warehouse should include product usage data from one or more other warehouses, select the appropriate warehouse(s) from the Additional Warehouses to Combine for Classification list. Note that this list is available only if an ABC model is selected in the ABC Model drop-down list.
Click the Accept button to save your changes.