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.
With the grouping logic in the matrix above, we can reach a more precise picture using total price and volume.
References
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