Scarce - difficult and easy analysis, Financial Accounting

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SED Analysis

SDE i.e. Scarce, Difficult and Easy analysis estimates the significance of inventory items on the basis of their availability. According to SDE analysis the inventory items are combination in the subsequent categories:

Scarce (S) items are those items that are in short supply. Mainly of the time these items are significant and essential for continuous production.
Difficult (D) items are those items that can't be produced simply.
Easy (E) items are those items that are readily available in the market.

In SDE analysis the major focus is on the availability of the inventory. This category of analysis is resorted to as the markets are synchronized and input and output is controlled through the government.

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