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MAIN STEPS
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DefineABCCompile
The Compile Criterion field is found in the Define ABC Compile window. For each distinct compile, you can choose one of the following criteria to
value and rank each item included in the ABC compile. This criterion defines what the rank of a particular item will be in the ABC compile.
For example, if you use Current onhand quantity as your compile criterion, an item with an onhand quantity of 10 units is of higher rank than
another item with a quantity of 5 units.
If you use the Current onhand value criterion, and the first item from above has a cost of $10 per unit and the second item from above has a cost of
$25 per unit, the second item has a higher value than the first item since Oracle Inventory compares $100 ($10 10 units) to $125 ($25 5 units).
Current onhandquantity
Use the current onhand quantity of inventory. Assign the sequence number by descending quantity.
Current onhand value
Use the current onhand quantity of inventory times the cost for the cost type. Assign the
sequence number by descending value.
Historical usage value
Use the historical usage value (transaction history). This is the sum of the transaction quantities times the unit cost of the transactions for the time
period you specify. Assign the sequence number by descending value.
Historical usage quantity
Use the historical usage quantity (transaction history) for the time period you specify. Assign the sequence number by descending quantity.
Historical number of transactions
Use the historical number of transactions (transaction history) for the time period you specify. Assign the sequence number by descending number of
transactions.
In the Define ABC Compile window you select a valuation scope for determining
the ranking of items. If you choose to restrict your ABC compile to items within a
particular subinventory, you have the option of valuing your items across all
subinventories in the organization or just the one for which you have restricted the
ABC compile.
For example, item RELAY1 has an onhand quantity of 5 units in subinventory
STORES1. The same item also exists in other subinventories in your organization, for a
total onhand quantity of 30 units in the entire organization. Item RELAY2, has an on
hand quantity of 10 units in STORES1 and a total onhand quantity of 20 units in the
entire organization. You choose to compile your ABCanalysis based on Current onhand
quantity.
If you restrict your ABC compile to subinventory STORES1, both RELAY1 and
RELAY2 are included in the ABC analysis since they both exist in STORES1. However,
the value to use is determined by what you choose in the Valuation Scope field on the
Define ABC Compile window. If you choose to restrict valuation to the subinventory,
Oracle Inventory uses 5 units for RELAY1, 10 units for
RELAY2, and ranks RELAY2 higher than RELAY1. However, if you choose to value the
same items across the organization, Oracle Inventory uses 30 units for RELAY1, 20 units
for RELAY2, and ranks RELAY1 higher than RELAY2.
COMPILE CRITERION
The Compile Criterion field is found in the Define ABC Compile window. For each distinct compile, you can choose one
of the following criteria to value and rank each item included in the ABC compile. This criterion defines what the rank
of a particular item will be in the ABC compile.
For example, if you use Current onhand quantity as your compile criterion, an item with an onhand quantity of 10 units is
of higher rank than another item with a quantity of 5 units.
If you use the Current onhand value criterion, and the first item from above has a cost of Rs 10 per unit and the second
item from above has a cost of Rs 25 per unit, the second item has a higher value than the first item since Oracle
Inventory compares Rs 100 (Rs 10 10 units) to Rs 125 (Rs 25 * 5 units).
Current onhandquantity
Use the current onhand quantity of inventory. Assign the sequence number by descending quantity.
Current onhand value
Use the current onhand quantity of inventory times the cost for the cost type. Assign the
sequence number by descending value.
Historical usage value
Use the historical usage value (transaction history). This is the sum of the transaction quantities times the unit cost of the
transactions for the time period you specify. Assign the sequence number by descending value.
Historical usage quantity
Use the historical usage quantity (transaction history) for the time period you specify. Assign the sequence number by
descending quantity.
Historical number of transactions
Use the historical number of transactions (transaction history) for the time period you specify. Assign the sequence number
by descending number of transactions.
DefineABCGroup
AssigntheItemsfromtheABCcompileto
theClasses