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Necessary Tools for the

ABC Inventory Classification

Europe Mirror Site Site for Asia Site for Asia-Pacific


Site for Middle East UK Site USA Site

This site is a part of the JavaScript E-labs learning objects


for decision making. Other JavaScript in this series are
categorized under different areas of applications in the
MENU section on this page.
Professor Hossein Arsham

The ABC classification process is an analysis of a range of


items, such as finished products or customers into three
categories: A - outstandingly important; B - of average
importance; C - relatively unimportant as a basis for a
control scheme. Each category can and sometimes should
be handled in a different way, with more attention being
devoted to category A, less to B, and less to C.

Inventory Control Application: The ABC classification


system is to grouping items according to annual sales
volume, in an attempt to identify the small number of
items that will account for most of the sales volume and
that are the most important ones to control for effective
inventory management.

This following JavaScript constructs an empirical


cumulative distribution function (ECDF) as a measuring
tool and decision procedure for the ABC inventory
classification.

Enter the dollar values and demands of up-to-42 distinct


items and then click the Calculate button. Blank boxes are
not included in the calculations but zeros are.

In entering your data to move from cell to cell in the data-


matrix use the Tab key not arrow or enter keys.

To edit your data, including add/change/delete, you do not


have to click on the "clear" button, and re-enter your data
all over again. You may simply add a pair of numbers to
any blank cells, change a number to another in the same
cell, or delete a number from a cell. After editing, then
click the "calculate" button.

For extensive edit or to use the JavaScript for a new set of


data, then use the "clear" button.

Item Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14
$ Value for
Each Item
Demand for
That Item
Item Number 15 16 17 18 19 20 21 22 23 24 25 26 27 28
$ Value for
Each Item
Demand for
That Item
Item Number 29 30 31 32 33 34 35 36 37 38 39 40 41 42
$ Value for
Each Item
Demand for
That Item
CLEAR

Necessary Tools for the ABC Classifications


For Technical Details, Back to:
Decision Making in Economics and Finance

Kindly email your comments to:


Professor Hossein Arsham

MENU
Decision Tools in Economics & Finance Statistics
Europe Mirror Site Europe Mirror Site

• ABC Inventory Classification • Analysis of Covariance


• Autoregressive Time Series • ANOVA for Condensed Data Sets
• Beta and Covariance Computations • ANOVA for Dependent Populations
• Bivariate Discrete Distributions • ANOVA: Testing the Means
• Break-Even Analysis and Forecasting • Bayesian Statistical Inference
• Categorized Probabilistic, and Statistical Tools • Bivariate Sampling Statistics
• Detecting Trend & Autocrrelation • Chi-square Test for Relationship
• Determination of the Outliers • Compatibility of Multi-Counts
• Forecasting by Smoothing • Confidence Intervals for Two Populations
• Inventory Control Models • Descriptive Statistics
• Linear Optimization Solvers to Download • Determination of the Outliers
• Linear Optimization with Sensitivity • Empirical Distribution Function
• Maths of Money: Compound Interest Analysis • Equality of Multi-variances
• Matrix Algebra, and Markov Chains • Estimations With Confidence
• Mean, and Variance Estimations • Goodness-of-Fit for Discrete Variables
• Measuring Forecast Accuracy • Identical Populations Testing
• Other Polynomial Regressions • Index Numbers with Applications
• Optimal Age for Replacement • K-S Test for Equality of Two Populations
• Parametric System of Linear Equations • Lilliefors Test for Exponentially
• Performance Measures for Portfolios • Multiple Regressions
• Plot of a Time Series • Percentage: Estimation & Testing
• Predictions by Regression • Paired Proportion Test
• Proportion Estimation • Polynomial Regressions
• Quadratic Regression • Pooling Means, and Variances
• Regression Modeling • P-values for the Popular Distributions
• Seasonal Index • Quadratic Regression
• Single-period Inventory Analysis • Sample Size Determination
• Summarize Your Data • Revising the Mean and the Variance
• System of Equations, and Matrix Inversion • Scattered Diagram and the Outliers
• Test for Random Fluctuations • Simple Linear Regression
• Test for Seasonality • Subjective Assessment of Estimates
• Test for Stationary Time Series • Subjectivity in Hypothesis Testing
• Time Series' Statistics • Test for Several Correlation Coefficients
• Test for Homogeneity of a Population
• Test for Normality
Probabilistic Modeling • Test for Uniform Distribution
Europe Mirror Site • Testing Poisson Process
• Test for Randomness
• Bayesian Inference for the Mean • Testing Several Proportions
• Bayes' Revised Probability • Testing the Mean
• Bivariate Discrete Distributions • Testing the Medians
• Comparing Two Random Variables • Testing the Correlation Coefficient
• Decision Making Under Uncertainty • Testing Two Populations
• Determination of Utility Function • Testing the Variance
• Making Risky Decisions • The Before-and-After Test
• Measure the Quality of Your Decision • The Other Means
• Multinomial Distributions • Two-Way ANOVA Test

• Two-Person Zero-Sum Games • Two-Way ANOVA with Replications

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Educational Multimedia, of materials presented on this Web site is permitted for non-
commercial and classroom purposes only.
This site may be translated and/or mirrored intact (including these notices), on any server
with public access. All files are available at
http://www.mirrorservice.org/sites/home.ubalt.edu/ntsbarsh/Business-stat for mirroring.

Kindly e-mail me your comments, suggestions, and concerns. Thank you.

Professor Hossein Arsham


Back to:

Dr Arsham's Home Page

EOF: © 1994-2009.

http://home.ubalt.edu/ntsbarsh/Business-stat/otherapplets/ABClass.htm

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