A complete guide for ABC Analysis . What does it mean in inventory management? How to implement? Challenges vs benefits? All in this article. Learn what ABC analysis is, its full form, and how it helps businesses improve inventory control, reduce costs, and optimize procurement. Step-by-Step Guide to Performing ABC Analysis Real-Life Examples of ABC Analysis Common Challenges in ABC Analysis Integrating ABC Analysis with Inventory Management Software Conclusion FAQs What Is ABC Analysis in Inventory Management? ABC analysis is a method of categorizing inventory into three groups—A, B, and C—based on their importance. ABC Analysis Inventory Classification: A, B, and C Categories ABC analysis is a system that came up in inventory management, segregating inventory items into three groups: A, B, and C, in terms of value and frequency of sales. Here’s a tabular view of ABC classification, showing what each category means, examples, and how they should be managed.
