ABC Analysis-Reports

Question

Hi gurus,
In some reports output i found the button ABC analysis button.
What are the featurs of this button, can anybody explain it.
Cheers,
Sumith

Answer 1

Hi Sumith,
ABC analysis is used to classify characteristic values in order of importance for particular key figures.
Examples: ABC Analysis
An ABC analysis divides items into three categories:
A: Important
B: Less important
C: Relatively unimportant
Following are some of the examples of ABC analysis being used for different reports.
Purchasing Information System:
You can use the ABC analysis to classify vendors in terms of the key figure invoiced amount.
Sales Information System:
You can use the ABC analysis to classify sales organizations with regard to the key figure incoming order or material or the key figure invoiced sales.
Inventory Controlling:
You can use the ABC analysis to classify materials according to the key figure usage value.
Shop Floor Information System:
You can use the ABC analysis to classify work centers in terms of the key figure scrap quantityu2019.
Plant Maintenance Information System:
You can use the ABC analysis to classify object classes with regard to the key figure breakdown duration.
Quality Management Information System:
You can use the ABC analysis to classify vendors according to the key figure number of lots not in order.
Hope this helps you.
Rgds
Manish