Questions · Q12
Q.What is VED Analysis? How does it differ from ABC Analysis?
ChseodishaTextbookSubjectiveImportance★★★★★est
15% · 12/78 Questions
You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.
Start your 14-day free trial to unlock the full solution →VED Analysis classifies materials — especially spare parts — into three categories according to how critical each item is to production if it runs out:
- Vital (V): items whose stock-out would halt production entirely; these are always kept in adequate stock, whatever their cost.
- Essential (E): items whose stock-out would cause serious but not total disruption; kept in reasonable stock.
- Desirable (D): items whose absence causes only minor inconvenience; kept in minimum stock.
Difference from ABC Analysis:
| Basis | VED Analysis | ABC Analysis |
|---|---|---|
| Basis of classification | Criticality of the item to production | Annual usage VALUE of the item |
| Categories | Vital, Essential, Desirable | A, B, C |
| Best suited to | Spare parts and critical items | General inventory / high-value materials |
| Key question | 'What happens to production if this runs out?' | 'How much money is tied up in this item?' |
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.