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Written by:

Rey O


Date added:

June 28, 2014








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3 / 779


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The analysis of purchase value is based on unit value, annual volume and annual value. Class % of total items purchased % of total purchase dollars A 10 70-80 B 10-20 10-15 C 70-80 10-20 Typically the smaller, less important item creates the most amount of work and nuisance out of proportion to their dollar value and importance...
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By classifying items that have the best potential for savings, purchasing can discover where to spend the time and add the most value. It is common to identify C items, and deal with those items by carrying inventories, creating blanket agreements or other strategies that reduce administrative and repetitive work...
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