In addition to that, an organization needs to choose an appropriate order pattern (e.g. "just-in-time") to avoid excess capacity.
There are no fixed thresholds for each class, and different proportions can be applied based on objectives and criteria which vary between companies.
[6] It uses an optimization of cost (i.e. number of items) versus yield (i.e. sum of their estimated importance).
Computed ABC was, for example, applied to feature selection for biomedical data,[7] business process management[8] and bankruptcy prediction.
[9] Actual distribution of ABC class in the electronics manufacturing company with 4,051 active parts.
By applying weighed control based on ABC classification, required man-hours and inventory level are drastically reduced.