Classification / ABC analysis is the analysis of a group of items in descending order based on the cost of the item per period of time or the total cost.In general, ABC classification used in controlling inventories .

Factors that determine the interests of an item :

1. Cost per unit item
2. The total value of money items
3. Sensitivity item to changes in design
4. The risk of theft of items
5. Difficulty obtaining items
6. Inventories item
7. The space required to store items
8. Availability of manpower , resources and facilities needed to make items
9. Lead time of ordering the first item until its arrival

ABC analysis can be used to determine:

1. Cycle counting , that means more frequent item A test of the item B and C.
2. Engineering , meaning that items A and B provide guidance on the engineering section to find items that need to be focused .
3. Priority of purchase , meaning that the purchasing activity is focused on high -quality raw materials and users with a high amount .
4. Security , meaning that indicators more items safely stored in a locked room.
5. Replenishment system, meaning that the ABC classification will help identify the control methods used .
6. The investment decision , meaning that the item class A portrait of a larger investment, it must be careful in making decisions about the quality and safety stock of the item of class A.

The procedure for classifying items into class A, B and C :

1. Determine the volume of use per time period of item you want to classify
2. Duplicate volume per time period of each inventory item with the cost per unit to obtain the value of total usage cost per time period for each item
3. Add up the total value of the use of the cost of all the items
4. Divide the total value pengguana cost of each item with a total value of overall cost of use
5. Register the item was added to the ranking percentages in descending order
6. Classify the inventories of items into class A, B and C with a rule of thumb 20 % of items classified into class A , 30 % diklasifikasikana item to class B , and 50 % items classified under class C.