Definition
An inventory classification technique that ranks items by their value or importance, with A items being the most significant and C items the least. It lets managers focus tighter control and forecasting effort on the high-value A items. The method is based on the principle that a small share of items usually accounts for most of the value.
Frequently asked questions
What is ABC Analysis?
An inventory classification technique that ranks items by their value or importance, with A items being the most significant and C items the least. It lets managers focus tighter control and forecasting effort on the high-value A items. The method is based on the principle that a small share of items usually accounts for most of the value.
Which glossary terms are related to ABC Analysis?
ABC Analysis is a supply chain & warehousing term in the South African import/export industry. Related terms in the same area include 3PL (Third-Party Logistics), 4PL (Fourth-Party Logistics), Bonded Logistics, Bonded Warehouse (SOS/OS), Break Bulk — each has its own plain-English definition in the TradeCaravan glossary.