ABC inventory classification

ABC inventory classification,

Definition of ABC inventory classification:

  1. Inventory control based on a form of Pareto analysis. The inventory items are divided into three categories (A, B, and C), according to a criterion such as revenue generation, turnover, or value. Typically, A items represent 20 percent in terms of quantity and 75 to 80 percent in terms of the value. Also called usage value analysis. See also ABC analysis.

Meaning of ABC inventory classification & ABC inventory classification Definition