VED classification

VED Classification:-

VED – Vital, Essential and Desirable classification is applicable largely to spare parts. Stocking of spare parts is based on strategies different from those of raw materials because of there consumption pattern is different. Here the spare parts are classified in to three categories.

·      Vital     -           The spares, the stock out of which even for a short time will stop the production.

·      Essential -         The spares, the absence of which cannot be tolerated for more than a few hours or a day.

·      Desirable -        The desirable spares are those spares which are needed but this absence for even a week or so will not stop the production.