An inventory ABC analysis is a way of categorizing items within a business based on their importance. It’s one of the best ways to manage inventories and ensure that you’re optimizing efficiency and resources. The ABC system breaks down inventory into three categories: A, B and C. “A” items are the most important; they provide the most revenue or value to your business and should be managed with the highest priority. “B” items offer moderate levels of revenue and value, but don’t require as much attention as “A” items. And finally, “C” items are least valuable and need only minimal oversight. By managing inventories in this way, businesses can allocate resources more efficiently and make sure profits stay high!