S-D-E Analysis

This analysis is used to ascertain lead time for procurement and helps in deciding purchase (i.e. materials procurement) strategies.

S-D-E analysis is based on the availability of the items in the market. S-D-E is meant as follows:

S-stands for 'Scarce Items'

These items are in very short supply and generally imported. Procurement of such items generally requires a lot of exercise and investment.

D-refers to 'Difficult Items'

Such items are indigenously available but cannot be procured easily, as there may be very few suppliers, or shortage of material, or available at far-off places only

E-means 'Easily' Available Items'

These items are easily available even in local market. There will not be any problem in procuring such materials.