The Pareto tab allows you to specify how the ABC codes should be assigned.
Weighting Basis:
History and Forecasts: These settings allow you to indicate whether the ranking should be performed using the historic demand or the current forecasts. The Period spinner(s) allows you to set the span for your selection.
Hierarchy level: The ABC codes are assigned to a single level of the hierarchy. The Hierarchy level drop-down allows you to pick the level to use.
Units: If you have defined conversion factors, this option allows you to select the unit of measure on which to base the ABC code assignments. Default refers to the unit of measure used for the historic demand data you read into Forecast Pro.
Ranking Basis:
Volume (%): This option allows you to set the codes based upon the cumulative volume of each group. For example, if A is set to 80%, B is set to 15% and C is set to 5%, Forecast Pro will first rank all of the items from highest volume to lowest volume and then sequentially place the top ranked items into the A group until their cumulative volume equals or exceeds 80% of the total volume. It will then sequentially place items into the B group until the cumulative volume of the A and B items equals or exceeds 95% (80% + 15%). The remaining items (5% or less of the cumulative volume) are assigned type C.
Series Count (#): This option allows you to assign specific numbers of items to each group. For example, if you had 1,000 items and you set the A group to 100, the B group to 200 and the C group to 700—the 100 highest volume items would be assigned to group A, the next highest 200 items would be assigned to group B and the remaining 700 would be assigned to group C.
Series Count (%): This option allows you to assign a specified percentage of the total number of items you have to each group. For example if A is set to 20%, B is set to 50% and C is set to 30%, Forecast Pro will first rank all of the items from highest volume to lowest volume and then sequentially place the top ranked items into the A group until the number of A group items equals 20% of the total number of items. It will then sequentially place items into the B group until the number of B group items equals 50% of the total number of items. The remaining items (30% of the total number of series) are assigned type C.
Group zero volume: If this option is on, any items having zero volume are placed into group D.
Total series. This displays the total number of series in the selected hierarchy level.