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+--- Thread: ABC plan (control by importance exception CIE) (/thread-abc-plan-control-by-importance-exception-cie)
ABC plan (control by importance exception CIE) - noman - 08-09-2006
i don't get it.....whether we categorise stock items on basis of their ratio of cost to total cost
or
their ration of usage to total usage...
i saw in matz n usry..but couudn't understand the basis..
- Muhammad Adnan Arshad - 08-10-2006
for more accuracy, concentrate on both basis.
i mean,
Individual CostTotal Cost
Individual Qty UsedTotal Qty
But focus more on the total cost. Put that item first, whose per unit & total cost is the highest among all but its qty used is the least among all. put this point in your mind & then categorise the items under ABC/CIE/Pareto Plan.
For more understanding, consult EMILE WOOLF BOOK, PBP Study Text (Stock Control Procedures/Plans) etc.