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  • Writer's pictureSedat Onat

VED Analysis

Updated: Aug 30, 2023

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.




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