Attention and Scope

Attention Rule

ABC classes are a simple way to focus management attention on higher dollar-use items.

highlighted = computed this step

A attention

A class has 2 items: X and Y.

A attention=X,Y\text{A attention}=X,Y
ABC attention ruleThe chart shows class labels as a management attention rule.ABC attention ruletotal annual use 150X 60Y 40W 30Z 20annual dollar use, sorted high to lowitemdemandcostusecum shareclassX106602/5AY202402/3AW3013013/15BZ54201CclassesA: X,YB: WC: Zthresholds are policy choices

B attention

B class has 1 item: W.

B attention=W\text{B attention}=W
ABC attention ruleThe chart shows class labels as a management attention rule.ABC attention ruletotal annual use 150X 60Y 40W 30Z 20annual dollar use, sorted high to lowitemdemandcostusecum shareclassX106602/5AY202402/3AW3013013/15BZ54201CclassesA: X,YB: WC: Zthresholds are policy choices

C attention

C class has 1 item: Z.

C attention=Z\text{C attention}=Z
ABC attention ruleThe chart shows class labels as a management attention rule.ABC attention ruletotal annual use 150X 60Y 40W 30Z 20annual dollar use, sorted high to lowitemdemandcostusecum shareclassX106602/5AY202402/3AW3013013/15BZ54201CclassesA: X,YB: WC: Zthresholds are policy choices

Attention rule

The labels prioritize attention; they do not compute an optimal inventory policy.

classes guide attention\text{classes guide attention}
ABC attention ruleThe chart shows class labels as a management attention rule.ABC attention ruletotal annual use 150X 60Y 40W 30Z 20annual dollar use, sorted high to lowitemdemandcostusecum shareclassX106602/5AY202402/3AW3013013/15BZ54201CclassesA: X,YB: WC: Zthresholds are policy choices