So would I be incorrect if I classified A items as anything over 100k, B item greater than or equal to 50k but less than 100K and C items less than 50k or should we look at the top 20% of items first and classify those as A?
This is a bit of an art too on where you draw the line between the classes. If there is a noticeable change in cost, that’s where you separate. The 20% is not a set rule so the % of high dollar value items could be more or less the 20%. The same for the remaining classes.
Hi there, No, the number in each classification depends on how many products there are . This example has only 10, but if there are 10,000 or 100,000 the number will change. Also it depends on the demand and costs involved. This example could have had 1 A, 5 B and 4 C. There is no fixed breakdown. Hope this helps. Mark
Operations Management: Sustainability and Supply Chain Management, Third Canadian Edition by Heizer, Render, Munson, and Griffin ISBN 978-0-13-483807-6
Thank you so much for this video! I am just understanding this fully after watching a million videos. THANK YOU!
You are so welcome and thanks for the kind feedback!
Thank you very much
Sir i have taken this lesson but i didnt understand bcs of being different major.Hope i ll understand thanks to you❤
Glad to help!
Thank you! Its simplier than I just thought
You're welcome!
Well done and easy explained, thanks
Glad you liked it
Thank you! very helpful
Thanks Adji! I'm glad you found it helpful.
So would I be incorrect if I classified A items as anything over 100k, B item greater than or equal to 50k but less than 100K and C items less than 50k or should we look at the top 20% of items first and classify those as A?
didn't get to the end yet. but would still like some insight
This is a bit of an art too on where you draw the line between the classes. If there is a noticeable change in cost, that’s where you separate. The 20% is not a set rule so the % of high dollar value items could be more or less the 20%. The same for the remaining classes.
thank you for this!!
You're very welcome!
does the A classification always have to be 2 and b = 3 and c = 5 ?
Hi there,
No, the number in each classification depends on how many products there are . This example has only 10, but if there are 10,000 or 100,000 the number will change. Also it depends on the demand and costs involved. This example could have had 1 A, 5 B and 4 C. There is no fixed breakdown.
Hope this helps.
Mark
thank you so much
You’re welcome!
Thank you
You're welcome, Omar!
what is the textbook name ?
Operations Management: Sustainability and Supply Chain Management, Third Canadian Edition by Heizer, Render, Munson, and Griffin ISBN 978-0-13-483807-6
i regret choosing degree in business management
I don't blame you!
@@The_Business_Doctor thx for the vid though
@@donaldbiden636 You're very welcome.