ABC Analysis

Definition: ABC Analysis is a method for inventory categorization used in inventory management and/or materials management.
In this approach normally 3 types of inventory items are separated:
A Items: these require tight control and Just-in-time management, because even if they are present only in small numbers, they make up a large percentage of inventory on a cost basis.
B Items: these can be less tightly controlled because they are less expensive than A items.
C Items: these require only very limited or no control, because they are large in numbers and very cheap.

💡

Learn more about ABC Analysis.

More on inventory: Inventory, Inventory Management, Materials Management, Vendor Managed Inventory.

You may also like: Full-time MBA, Executive MBA, Executive Education, Online MBA.

MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration.

We like to keep things short, and provide links to learn more about your subject.

Add MBA Brief to your desktop / iPad