SUPPLY CHAIN VISION LOGISTICS TERMS and GLOSSARY Updated October 2003 ABB: See Activity Based budgeting ABC: See Activity Based Costing ABC Classification: Classification of a group of items in decreasing order of annual dollar volume or other criteria. This array is then split into three classes called A, B, and C. The a group represents 10-20% by number of items and 50 -70% by projected dollar volume. The next grouping, B, represents about 20% of the items and about 20% of the dollar volume. The C class contains 60-70% of the items and represents about 10-30% of the dollar volum ABC Costing: See Activity Based Costing ABC Inventory Control: An inventory control approach based on the aBC classification ABC Model: In cost management, a representation of resource costs during a time period that re consumed through activities and traced to products, services, and customers or to any other bject that creates a demand for the activity to be performed ABC System: In cost management, a system that maintains financial and operating data on an organizations resources, activities, drivers, objects and measures. ABC models are created and maintained within this system ABM: See Activity Based management Abnormal Demand: Demand in any period that is outside the limits established by management policy. This demand may come from a new customer or from existing customers whose own demand is increasing or decreasing. Care must be taken in evaluating the nature of the demand is it a volume change, is it a change in product mix, or is it related to the timing of the order? Also see Outlier ABP: See Activity Based Planning Definitions compiled by Kate vitasek Bellevue. Washington Please note: The Council of Logistics Management does not take responsibility for the content of these definitions, nor does the Council endorse these as official definitions except as noted.SUPPLY CHAIN VISIONS LOGISTICS TERMS and GLOSSARY Updated October 2003 Definitions compiled by: Kate Vitasek Supply Chain Visions Bellevue, Washington Please note: The Council of Logistics Management does not take responsibility for the content of these definitions, nor does the Council endorse these as official definitions except as noted. A ABB: See Activity Based Budgeting ABC: See Activity Based Costing ABC Classification: Classification of a group of items in decreasing order of annual dollar volume or other criteria. This array is then split into three classes called A, B, and C. The A group represents 10 – 20% by number of items and 50 –70% by projected dollar volume. The next grouping, B, represents about 20% of the items and about 20% of the dollar volume. The C class contains 60 – 70% of the items and represents about 10 – 30% of the dollar volume. ABC Costing: See Activity Based Costing ABC Inventory Control: An inventory control approach based on the ABC classification. ABC 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. ABC System: In cost management, a system that maintains financial and operating data on an organization’s resources, activities, drivers, objects and measures. ABC models are created and maintained within this system. ABM: See Activity Based Management Abnormal Demand: Demand in any period that is outside the limits established by management policy. This demand may come from a new customer or from existing customers whose own demand is increasing or decreasing. Care must be taken in evaluating the nature of the demand: is it a volume change, is it a change in product mix, or is it related to the timing of the order? Also see: Outlier. ABP: See Activity Based Planning