What is ABC analysis?

1.	What is ABC analysis?
Answer» ABC analysis is an inventory categorization method which consists in dividing items into three categories (A, B, C): 1. A being the most valuable items. 2. B-items are the inter class items, with a medium consumption value. 3. C being the least valuable ones. This method aims to draw managers’ attention on the critical few (A-items) not on the trivial many (C-items).

Answer»

ABC analysis is an inventory categorization method which consists in dividing items into three categories (A, B, C):

1. A being the most valuable items.

2. B-items are the inter class items, with a medium consumption value.

3. C being the least valuable ones. This method aims to draw managers’ attention on the critical few (A-items) not on the trivial many (C-items).

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