ABC Analysis in inventory management helps organizations analyze the value of their stocks and prioritize the items that need the most attention and care. By placing each item into a specific category– A, B, or C– you can determine how much investment is needed for each item. The “A” items are those with a high value and should be closely monitored; B items are of medium value, requiring some control; and C items are of low value, needing minimal involvement. With this method, businesses can focus on managing the most important products first, saving time, money, and resources.