SMRP BoK Review Workbook

▪ A: high value low turns; 15% of items 60-80% of value

▪ B: 25% of items 15-25% of value

▪ C: low value high turns; 65% of items 5-15% of value

How to determine the classification?

1. Draw on flip chart


2. Lead Time
   a. A > 1 Month
   b. B < 1 Month >1 Week
   c. C <1 Week


3. Consequences of Stockout
   a. A > $250K
   b. B < $250K > $10K
   c. C < $10K


4. Consumption Rate
   a. A > 5
   b. B < 5 >2
   c. C < 2

Putting the ABCs Togethers. Discuss how these would influence stocking?

A

▪ AAA (Stock)

▪ AAB (Stock)

▪ AAC (Stock)

▪ ABA (Stock)

▪ ABB (Stock)

B

▪ BAA (Stock)

▪ BAB (Stock)

▪ BAC (Stock)

▪ BBA (Stock)

▪ BBB (Stock)

▪ ABC (Non Stock)

▪ BBC (Non Stock)

▪ ACA (Stock)

▪ BCA (Stock)

▪ ACB (Non Stock)

▪ BCB (Non Stock)

▪ ACC (Non Stock)

▪ BCC (Non Stock)

C

▪ CAA (Stock)

▪ CAB (Stock)

▪ CAC (Non Stock)

▪ CBA (Stock)

▪ CBB (Stock)

▪ CBC (Non Stock)

▪ CCA (Stock)

▪ CCB (Non Stock)

▪ CCC (Non Stock)