Write short notes on ABC inventory management.
Write short notes on ABC inventory management.
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ABC Inventory Management
ABC inventory management is a technique used to categorize and prioritize inventory items based on their importance to the business. It classifies items into three categories (A, B, and C) based on their value and usage, allowing businesses to focus their attention and resources on the most critical items. Here's a brief overview of how ABC inventory management works:
1. A Category (High Value, Low Usage):
2. B Category (Moderate Value, Moderate Usage):
3. C Category (Low Value, High Usage):
Benefits of ABC Inventory Management:
Conclusion:
ABC inventory management is a valuable tool for businesses to categorize and prioritize their inventory based on value and usage. By focusing on critical items and optimizing inventory levels, businesses can improve efficiency, reduce costs, and enhance their overall performance.