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...
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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 classificatio
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