NAME MOHD FARHAN WAN NOR HAZIRAH BT MAT RASIT NUR SYAFIKA BT MUHAMAD FUAD NUR SASHILA BT MD NOR

NUR SHUZANI ATHIRAH MOHD SHUKOR

MATRIC NO. 10DLS11F1017 10DLS11F1019 10DLS11F1029 10DLS11F1041 10DLS11F1084

Categorizing inventory item according to the potential amount to be controlled. Divides inventory into three categories, A, B, and C based on the value.

A : important for an organization and high value B : less important than A items, more important

than C items

C : marginally important

MAKE THE LIST OF ALL ITEMS OF INVENTORY

DETERMINE THE MONEY VALUE OF EACH ITEMS

MULTIPLY EACH ITEM BY ITS VALUE

SELECT THE TOP 10% OF ALL ITEMS WHICH HAVE THE HIGHEST VALUE AND CLASSIFY AS A ITEMS

SELECT THE NEXT 20% OF ALL ITEMS WHICH THE NXT HIGHEST VALUE AND CLASSIFY AS B ITEMS

THE NEXT 70% OF ALL ITEMS WITH THE LOWEST VALUE PERCENTAGES AS C ITEMS