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In Materials Management

ABC analysis is an inventory categorization technique that divides items into three categories: A items which are very tightly controlled and have accurate records, B items which have less tight control and good records, and C items which have the simplest controls and minimal records. VED analysis classifies inventory based on its importance to an organization's production or activities, categorizing items as Vital, Essential, or Desirable. The SDE analysis looks at inventory availability and classifies items as Scare, Dependent, or Essential based on supply scarcity.

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Carl Longmore
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25 views

In Materials Management

ABC analysis is an inventory categorization technique that divides items into three categories: A items which are very tightly controlled and have accurate records, B items which have less tight control and good records, and C items which have the simplest controls and minimal records. VED analysis classifies inventory based on its importance to an organization's production or activities, categorizing items as Vital, Essential, or Desirable. The SDE analysis looks at inventory availability and classifies items as Scare, Dependent, or Essential based on supply scarcity.

Uploaded by

Carl Longmore
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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In materials management, ABC analysis is an inventory categorization

technique. ABC analysis divides an inventory into three categories—"A


items" with very tight control and accurate records, "B items" with less
tightly controlled and good records, and "C items" with the simplest
controls possible and minimal records.

VED analysis is an inventory management technique that classifies


inventory based on its functional importance. It categorizes stock under
three heads based on its importance and necessity for an organization
for production or any of its other activities. VED analysis stands for
Vital, Essential, and Desirabl

The SDE analysis looks at what inventory is available and classifies it


according to the scarcity of supply. With this analysis, scarce products
are usually imported, take longer to arrive and the supply in harder to
come by. An example of a scarce product is one that might have to go
through government agencies

FSN stands for fast-moving, slow-moving and non-moving items.


Essentially, this segments inventory into three classifications. It looks at
quantity, consumption rate and how often the item is issued and used.
Fast-moving items are items in your inventory stock that are issued or
used frequently.
HML analysis classifies the materials based on their unit prices. The
main objective of this analysis is to minimize the inventory cost such as
labour cost, material cost etc. More than 10,000 Rs.

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