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 ABC Classification

Use

The planning service “SPP: ABC Classification Service” groups products into ABC classes dependent on their sales behavior and thereby identifies fast-moving and slow-moving items.

Prerequisites

  • You have defined a service profile for ABC classification in Customizing for Advanced Planning and Optimization under Start of the navigation path Supply Chain Planning Next navigation step Service Parts Planning Next navigation step Inventory Planning Next navigation step Define Service Profile for ABC Classification. End of the navigation path In the Classification Limits column you have defined lower limits for the A, B, and C classification codes. You have also specified for each location the minimum number of times that a product must be ordered so that the system classifies it as A, B, or C.

  • You have scheduled the “SPP: ABC Classification Service" (SPP_INVP_ABCCLASS) planning service in the Planning Service Manager (PSM). For more information, see Use of the Planning Service Manager in SPP and PSM Services for Inventory Planning .

Activities

  • The system classifies each location product as A, B, or C depending on how often it is ordered and on the lower limit that you have defined.

  • You can see which classification code the system has assigned to which location product in the location product master data on the Procurement tab page in the ABC Indicator field.