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<title>ABC Analysis — Alan Edler Inventory Field Log</title>
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<h1>ABC Analysis</h1>
<p>Based on 2023 full-year picks across three warehouse lanes. I ranked by annual consumption value (qty × extended cost).</p>
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<tr><th>Class</th><th>SKU Count</th><th>% of SKUs</th><th>% of Total Value</th><th>Action Rule</th></tr>
<tr><td>A</td><td>248</td><td>12 %</td><td>74 %</td><td>Count every 4 weeks; backordered if below 14 days cover</td></tr>
<tr><td>B</td><td>741</td><td>36 %</td><td>21 %</td><td>Count every 8 weeks; reorder at 21 days</td></tr>
<tr><td>C</td><td>1,062</td><td>52 %</td><td>5 %</td><td>Count quarterly; dormant after 180 days</td></tr>
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<h2>Class-A worked example</h2>
<p>SKU: WH-7421 • Widget housing, annealing grade 2. Annual picks: <code>18,442 units</code> • Unit cost: <code>$4.37</code></p>
<p>Consumption value = 18,442 × $4.37 = <strong>$80,590.54</strong><br>
Daily avg velocity: <code>50.5 units/day</code> • 14-day safety cover: <code>707 units</code></p>
<p>Cycle count difference ≤ 1 % → no action. Difference > 1 % but ≤ 3 % → recount next day. Difference > 3 % → eight-point verification, update bin master.</p>
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<h2>Class-C worked example</h2>
<p>SKU: WH-9108 • Retainer clip, cadmium-plated. Annual picks: <code>312 units</code> • Unit cost: <code>$0.58</code></p>
<p>Consumption value = 312 × $0.58 = <code>$180.96</code><br>
180-day dormancy check: if last issue > 180 days → status «SUSPENSE» and hold 50 % of on-hand.</p>
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<p>Next: <a href="cycle.html">Cycle Count Protocol — daily worksheet format and escalation rules</a></p>
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