Practicing Success
___________ inventory is the least expensive, the company can order them in bulk and exercise minimal control. |
A Class B Class C Class D class |
C Class |
The inventory control technique known as ABC analysis builds on Pareto's Principle. In ABC analysis, a company reviews its inventory and sorts all SKUs into three categories, called "A" , "B" and "C" items. Items in "C" inventory are the least expensive, the company can order them in bulk and exercise minimal controls; all that really matters is that the company doesn't run out. |