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.
MBA Brief offers brief, yet very accurate definitions of MBA concepts, frameworks, methods and models. We keep it short and provide some links in case you'd like to learn more around a subject.
© 2020 MBA Brief - Last updated: 13-8-2020 - Privacy | Terms