ABC Analysis
Inventory Management
ABC Analysis
Inventory segmentation by annual consumption value, typically placing highest-value items in A class.
Examples
- 01ABC analysis shows that 180 of 4,000 purchased items make up 80 % of the yearly spend, so they become A items with weekly reviews.
- 02The warehouse review uses ABC analysis to place A items close to the picking zone and to count them every month.
- 03Using ABC analysis to cut safety stock on 2,500 low-value C items frees EUR 120,000 without hurting delivery.