The ABC technique of inventory control entails a system that keeps track of inventory and is utilized for supplies and distribution. Selective inventory control, or SIC, is another name for it.
ABC analysis is a process that divides inventory into three categories, A, B, and C, in order of decreasing value. Goods in the A category have the highest value, those in the B category have a lesser value than A, and items in the C category have the lowest value.
Inventory management and control are crucial for a company’s success. They assist them in keeping their costs in check. The ABC analysis aids inventory control by allowing management to concentrate on the highest-value commodities (the A-items) rather than the numerous low-value goods (the C-items).
The Pareto Principle is used to analyze ABC inventory. According to the Pareto Principle, the top 20% of items create 80% of sales volume. This means that the top 20% of the things will earn 80% of the income for the company. The 80/20 rule is another name for it.
2022-02-04T18:30:00Z