Administration Manual - B.E.S.T. Undertaking.

1517
10.3 ‘C’ Class items: These are Low Value large no. of
items, whose value accounts for 5% to 15% of the total
inventory cost. These items cover around 70% to 75% of
items.
‘ABC’ classification of items
Class Annual
consumption value
range
No. of items
(& approx.
percentage)
A Above Rs.2 lacs 405
B Between Rs.50,000/-
and Rs.2 lacs
(8%)
724
(14%)
C Below Rs.50,000/- 3631
(72%)
- Non-moving items 313
6%)
Total 5073
‘A’ class items are closely monitored to control inventory,
which cover around 75% to 80% cost.
‘B’ class items are moderately controlled. Procurement and
staggered deliveries of the items are done as per the policy.
Thus, by controlling ‘A’ & ‘B’ class items around 80% to
95% cost is controlled.
11. ‘VED’ ANALYSIS
11.1 ‘V’ (Vital): These are the items having vital application. If
these are not available, the work will suffer badly. The day-
to-day work will come to standstill.
11.2 ‘E’ (Essential): These are the items having comparatively
less vital application. If these are not available, the work