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what is ABC analysis please describe briefly.
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Answer Posted / amrita
A.B.C. Analysis is one of the techniques of inventory
control. It is called as “Always Better Control.” In this
technique the material is divided in to three categories or
the three groups. In A.B.C. Analysis inventory is
controlled according to the value of material. Control on
material according to their categories namely A.B.C. That
material which has a low quantity percentage but have very
high in value is come under the ‘A’ category. That material
which has a medium both in quantity percentage & in value
is come under the ‘B’ category. That material which has a
high quantity percentage but have very low in value is come
under the ‘C’ category
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