Importance Of VED Classifications

1.13.3 VED classifications (VED-Vital Essential Desirable)
While in ABC, classification inventories are classified on the basis of their consumption value and in HML analysis the unit value is the basis, criticality of inventories is the basis for vital, essential and desirable categorization.
The VED analysis is done to determine the criticality of an item and its effect on production and other services. If a part is vital it is given ‘V’ classification, if it is essential, then it is given ‘E’ classification and if it is not so essential, the part is given ‘D’ classification. For ‘V’ items, a large stock of inventory is generally maintained, while for ‘D’ items, minimum stock is enough.
a) Vital: Vital category items are those items without

This method is based on the fact that some stock items have a much higher annual usage value than others. This after doing a cost analysis, stock items are separated into three classes with the following characteristics.
1.13.6 SOS Analysis (Seasonal & Off-seasonal Analysis)
SOS analysis is based on seasonality of items and it classifies all the items into two categories ‘Seasonal ‘and ‘Off seasonal ‘.
The analysis helps in identifying items that are available only during a limited period of the year .For e.g. Raw mangoes are only available only during a summers
Identifying items that are seasonal but available throughout the year however their costs in offseason are relatively high.
As discussed above there are a number of methods used for selective inventory control and each method highlights a different aspect .The right method should be selected on the purpose for which we wish to carry out the selective inventory control.
For e.g. SOS analysis can be selected when we want to determine the seasonality of items and the right season for procuring

Other methods promote complexity, large overheads, automation, and other "state-of-the-art" technologies, while JIT advocates simplifying and streamlining the existing manufacturing process. This text is to introduce basic JIT concepts and assure you that JIT can work in your company.[5]

This paper argues the widespread adoption of Just-in-Time (JIT) logistics provides a key to understanding the growth in the U.S. trade share. To do so, I develop a dynamic trade model based on the choice of the logistics technology used in a firm’s supply chain. The model’s predicted trade dynamics depend on how the set of firms using JIT with international suppliers changes over time. [6]

This article discusses in depth the implementation of JIT manufacturing. The objectives are twofold. The first objective is to acquaint the reader with the overall JIT concept and the factors necessary for its implementation; the concepts presented here represent the ideal principles and methods of implementation.