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. Learn what is ABC inventory analysis , how to calculate it, and the pros and cons. See real examples to optimize your inventory management strategy. By mastering ABC analysis , you can enhance your inventory management practices, reduce holding costs, and boost overall profitability. In this comprehensive guide, I will provide you with a step-by-step tutorial on implementing ABC analysis , using Excel. I used this Excel Template to perform the analysis . 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.
