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ABC Analysis In Inventory Management

oboloo Glossary

ABC Analysis In Inventory Management

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.

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