ABC Analysis

Procedure for determining the priority according to importance and significance in three categories, based on the quantity/value relationship. Such values are, for example, turnover frequency, weight, or volume. The resulting 20/80 phenomenon means that 20% of the items make up approximately 80% of the turnover, 30% of the items contribute 15% to the turnover, and 50% contribute 5% to the turnover. Depending on the frequency the items a categorised as A, B, or C articles. By means of the ABC analysis the range of items can be economically divided according to order-picking aspects.