ABC plan (control by importance exception CIE)

[noman]

i don't get it.....whether we categorise stock items on basis of their ratio of cost to total cost
or
their ration of usage to total usage...

i saw in matz n usry..but couudn't understand the basis..

[Muhammad Adnan Arshad]

for more accuracy, concentrate on both basis.

i mean,
Individual CostTotal Cost
Individual Qty UsedTotal Qty

But focus more on the total cost. Put that item first, whose per unit & total cost is the highest among all but its qty used is the least among all. put this point in your mind & then categorise the items under ABC/CIE/Pareto Plan.

For more understanding, consult EMILE WOOLF BOOK, PBP Study Text (Stock Control Procedures/Plans) etc.