VED Analysis
Initials of Vital, Essential, and Desirable Words.
- Quality-based,
- An important type of analysis used mainly in the health sector,
- Groups products according to their importance.
The difference from ABC Analysis;
- Ordering them per their importance, as the name suggests.
- Unlike ABC Analysis, makes more qualitative-based grouping.
Especially in areas where time is critical, like in the health sector and defense products must be available,
- When and where they need to be,
- In the right amount,
- Ready for use.
It should be emphasized again that the relevant product’s availability and readiness for use are equally important.
ABC-VED Matrix
As mentioned above, ABC Analysis makes a quantitative grouping, while VED Analysis is qualitative. By combining these two approaches with ABC-VED Analysis, an even more detailed control mechanism can be established by grouping products based on importance and amount.
ABC-VED Matrix
With the grouping logic in the matrix above, we can reach a more precise picture using total price and volume.
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References
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