ABC Analysis of Inventory Control is a system used to organize and manage inventory by classifying it into three categories: A, B and C. Items in Category A represent the highest value and highest priority for attention, while Category C represents the lowest value and priority. By reallocating resources to lower-value items, organizations can optimize their inventory levels, reduce inventory costs and maximize the return on their investment. ABC Analysis helps businesses prioritize their inventory decisions by better understanding their stock mix and allocating resources to more profitable items.