Criteria for item analysis

    Extended Pareto analysis (ABC analysis but with additional classes)

     

    • “Forecastability” (= expected accuracy of forecasting)
    • Expected customer order frequency (daily versus yearly)
    • Strategic position in the product portfolio (“must have on stock” versus “can be produced over a given lead-time” or new item versus phase-out)
    • Market availability ( generic item versus unique product)
    • Different cost aspects (both unit cost as profitability)
    • Purchasing or production process (e.g. items with common sub-assemblies that get unique during last production steps)
    • Special storage conditions
    • Any other relevant criterion for your business