ABC Models are created and maintained within this system.ĪBI: * See Automated Broker Interface (ABI).ĪBM: See Activity-Based Management (ABM).Ībnormal Demand: Demand in any period that is outside the limits established by management policy. The C-class contains 60 to 70% of the items, and represents about 10 to 30% of the dollar volume.ĪBC Costing: See Activity-Based Costing (ABC)ĪBC Inventory Control: An inventory control approach based on the ABC volume or sales revenue classification of products (A items are highest volume or revenue, C – or perhaps D – are lowest volume SKUs.)ĪBC Model: In cost management, a representation of resource costs during a time period that are consumed through activities and traced to products, services, and customers, or to any other object that creates a demand for the activity to be performed.ĪBC System: In cost management, a system that maintains financial and operating data on an organization’s resources, activities, drivers, objects and measures. The next grouping, B, represents about 20% of the items and 20% of the dollar volume. The A group represents 10 to 20% by number of items, and 50 to 70% by projected dollar volume. This array is then split into three classes called A, B, and C. Read on to get a crash course in logistics terminology and expand your vocabulary!Ī | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z AĪBC Analysis: A classification of items in an inventory according to importance defined in terms of criteria such as sales volume and purchase volume.ĪBC Classification: Classification of a group of items in decreasing order of annual dollar volume or other criteria. The following is a glossary of supply chain and logistics terms with over 1,400 definitions for you to browse through. Glossary of Supply Chain and Logistics Terms Forklifts, Pallets & Materials Handling.Forklift/Pallets/Materials Handling RFP/.