ABC Analysis – Lean Manufacturing Terms

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ABC Analysis

Sequential ordering of product variants by quantity or value sold.

The goal is to distinguish high volume parts from low volume parts.

80% of the units or sales are represented by only around 20% of the part types (the “A” parts).

The next 15% of the units or sales are the “B” parts,

and the last 5% with low sales of many different part types are the “C” parts.

See also the 80-20 rule, the XYZ Analysis, and the ABC YXZ Analysis

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