What is ABC Analysis?
In this analysis, the inventory items in an organization are classified on the basis of their usage in monetary items. The items are divided into three categories as follows:
A : high consumption value iteni
II: moderate consumption value items; and
C : low consumptn value items.
The division of the ‘items into various categories is accomplished by plotting the usage value of the items to obtain the ABC distribution curve, which is also called the Pareto curve or the curve of maldistributton.
In this analysis, the inventory items in an organization are classified on the basis of their usage in monetary items. The items are divided into three categories as follows:
A : high consumption value iteni
II: moderate consumption value items; and
C : low consumptn value items.
The division of the ‘items into various categories is accomplished by plotting the usage value of the items to obtain the ABC distribution curve, which is also called the Pareto curve or the curve of maldistributton.
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